RBI set to hit pause in April policy

Mumbai: The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged at 5.25 per cent in its April monetary policy review, as rising inflation risks driven by the West Asia crisis complicate the outlook, economists said. Heightened geopolitical tensions, surging crude oil prices and sharp currency movements, with the rupee hovering near record lows, have increased uncertainty around inflation and growth projections. Economists believe the central bank will adopt a cautious, wait-and-watch approach. “Given the uncertainty around crude oil prices and geopolitical developments, the RBI is likely to remain on pause,” said ICRA Chief Economist Aditi Nayar.