RBI Policy: Governor's Words Crucial Amid West Asia Conflict, Rupee Woes

Expressions of Interest were invited in January 2023, with investors including Fairfax Financial Holdings, Emirates NBD and Oaktree Capital Management clearing the RBI's fit-and-proper criteria. Kotak Mahindra Bank had also joined the race. Due diligence by potential bidders began in August 2025, and the Department of Investment and Public Asset Management had earlier said that a core part of the transaction would be completed by March 31, 2026.

CNBC TV18•07-04-2026, 15:09

RBI Policy: Governor's Words Crucial Amid West Asia Conflict, Rupee Woes

•Upcoming RBI Monetary Policy Committee Meeting on April 8, 2026, faces shifted macro conditions due to global developments.
•West Asia conflict has pushed crude prices up and weakened the rupee, impacting inflation and growth projections.
•Economists do not expect a rate action from the central bank, with 80% not anticipating a rate hike in 2026.
•RBI is expected to act through liquidity measures, including dollar supply tools and schemes to attract inflows, rather than rate changes.
•Markets will closely track the central bank’s guidance on liquidity, currency management, and handling global risks.

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Key Questions Answered

The RBI is expected to keep interest rates on hold in its April 2026 meeting.

The West Asia conflict may reduce India's GDP growth by 1% and increase inflation.

The RBI may gradually adjust liquidity conditions based on evolving market conditions. Measures to support the rupee could limit the RBI's flexibility to ease banking system liquidity.