The easing of geopolitical tensions in West Asia has brought some relief to policymakers, but the Reserve Bank of India (RBI) is not lowering its guard just yet. RBI Governor Sanjay Malhotra said that while the truce has reduced immediate risks to inflation and growth, uncertainties surrounding crude oil prices, the monsoon, and global developments continue to warrant caution.
Speaking to ET Now, Malhotra said the central bank remains firmly data-dependent and has no pre-set path on interest rates despite market speculation about a possible tightening cycle.
