RBI holds lending rate at 5.25%, says India ‘fastest growing big economy’

He said that the rise in inflation exacerbated by food and fuel prices but is not broad-based, implying that it was only sectoral.

VIDEO | Mumbai: RBI Governor Sanjay Malhotra, in the Monetary Policy Statement, says, “The West Asia conflict continues to challenge the global economy by disrupting key trade routes and supply chains, amplifying market volatility and depressing business sentiment. Trade… pic.twitter.com/L5P5EflzDa

— Press Trust of India (@PTI_News) August 5, 2026

“The West Asia conflict continues to challenge the global economy by disrupting key trade routes and supply chains, amplifying market volatility and depressing business sentiment. Trade uncertainty persists as the US has imposed fresh tariffs. The global economic environment has become increasingly unstable,” Malhotra said.

He, however, added that global growth is projected to soften and while inflation is likely to be higher in 2026 as compared with that in 2025. “While some central banks have tightened monetary policy, others remain vigilant. Crude oil prices, currencies and financial markets continue to remain volatile, fluctuating in line with the changing intensity and uncertainties of the West Asia conflict,” Malhotra said.