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US-Iran conflict, El Nino: Why RBI did not hike repo rate despite headwinds
India🏛️ PoliticsCenter13 hr. ago

US-Iran conflict, El Nino: Why RBI did not hike repo rate despite headwinds

The Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.25% despite rising global inflation and geopolitical tensions such as the US-Iran conflict. The decision was made after a comprehensive assessment of macroeconomic and financial conditions, with the Monetary Policy Committee (MPC) maintaining a neutral policy stance. The RBI governor, Sanjay Malhotra, noted that while inflation has risen, particularly due to fuel and food prices, the cost pressures have not yet spread widely across the economy. He emphasized that core inflation remains subdued and that the central bank expects headline inflation to peak in the third quarter of FY27 before gradually easing. The decision follows similar actions by the US Federal Reserve, which also chose not to raise interest rates amid ongoing economic uncertainties.

The Nifty 50 index closed above 24,550 on Thursday, driven by gains in metal sector stocks. Meanwhile, other segments showed mixed performances, with FMCG shares seeing increased demand and IT shares declining. Media sector stocks also faced pressure as the index traded below 24,550 at certain points during the day. These fluctuations reflect ongoing investor sentiment influenced by both domestic and international factors. The trading session began with the Nifty hovering around the 24,550 mark, supported by positive momentum in metal shares. Investors appeared optimistic about the prospects of companies in the mining and industrial sectors, possibly due to improved commodity prices and stronger-than-expected earnings reports. However, the index dipped below the key psychological level of 24,600 later in the day, leading to declines in IT and media shares. FMCG stocks, on the other hand, saw heightened buying interest, suggesting a shift in focus towards consumer goods as investors sought relative safety amid market volatility. The decision by the Reserve Bank of India (RBI) to keep the repo rate unchanged at 5.25% played a pivotal role in shaping market dynamics. Despite rising global inflation and geopolitical tensions, including the ongoing US-Iran conflict and the effects of El Niño, the RBI maintained a neutral monetary policy stance. This move was widely interpreted as a sign of caution, reflecting concerns over the potential impact of external shocks on India's economic stability. In its policy statement, the RBI highlighted that while headline inflation had exceeded its target range, the upward trend was largely attributed to supply-side pressures, particularly in the fuel and food sectors. Core inflation, which excludes volatile items such as precious metals, remained subdued, reinforcing the central bank's view that inflationary pressures were not yet broad-based. The RBI also noted that economic growth remained robust, bolstered by strong domestic demand, steady manufacturing output, and healthy exports, which reinforced India's position as one of the world's fastest-growing economies. The decision to hold the repo rate steady was also influenced by the global economic environment. Central banks such as the US Federal Reserve similarly chose not to raise interest rates, despite growing calls to curb inflation. The RBI emphasized the importance of maintaining flexibility in its monetary policy approach, ensuring that it could respond effectively to evolving economic conditions. The ongoing conflict in West Asia, which has disrupted oil supplies and created uncertainty in global markets, was cited as a key factor in the RBI's cautious stance. Looking ahead, analysts expect the RBI to monitor inflation trends closely, especially as the impact of El Niño on monsoon patterns becomes clearer. The central bank has already revised its GDP growth forecast for the current financial year to 6.7%, slightly higher than the previous estimate of 6.6%. Investors will be watching for further guidance on how the RBI plans to navigate the challenges posed by global inflation, geopolitical instability, and climate-related risks. With the market showing varied responses to different sectors, the coming weeks will be crucial in determining whether the recent gains in metal shares can translate into sustained momentum.

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11 reports

Business Standard logoBusiness StandardIndependent🔒CenterFactual 85Objective 852 days ago
Nifty trades above 24,550; metal shares shine

The Nifty index, which is a benchmark for the Indian stock market, has crossed the 24,550 mark. Metal sector stocks have performed well, indicating positive sentiment towards this industry within the financial market.

Bias read (Center): The article discusses economic indicators related to the stock market and does not present any political stance or controversy. It focuses purely on market performance without any biased language or framing.

Why factuality (85): The article states Nifty trades above 24,550 and metal shares shine. This aligns with cross-source consensus showing Nifty hovering near or above that level in multiple reports. The claim is supported by several other articles.

Why objectivity (85): The language is neutral, simply reporting the market activity without adding interpretation or emotional emphasis.

Business Standard logoBusiness StandardIndependent🔒CenterFactual 85Objective 852 days ago
Nifty above 24,550; FMCG shares in demand

The article reports that the Nifty index has surpassed 24,550, indicating positive market sentiment. It highlights increased demand for Fast-Moving Consumer Goods (FMCG) shares, suggesting investor interest in this sector. The focus is on stock market performance and consumer goods companies, with no detailed analysis provided beyond these observations.

Bias read (Center): The article presents market data without overtly favoring any particular political ideology or economic stance. It focuses on financial indicators and investor behavior without commentary that would suggest a clear ideological leaning.

Why factuality (85): The article reports Nifty above 24,550 and FMCG shares in demand. This aligns with cross-source consensus showing Nifty near that level and sector-specific interest. The claim is consistent with other reports.

Why objectivity (85): The article presents the information in a neutral manner, highlighting market trends without subjective commentary or bias.

Business Standard logoBusiness StandardIndependent🔒CenterFactual 85Objective 855 days ago
Nifty trades above 24,350; pharma shares advance

The Nifty index closed above 24,350, reflecting positive market sentiment. Pharma sector shares saw notable gains, driven by favorable developments in the industry. The overall market performance suggests investor confidence in healthcare stocks amid ongoing economic conditions. No specific catalysts were detailed in the report, but broader market trends appear to be supporting the upward movement.

Bias read (Center): The article reports on stock market performance without overtly favoring any political ideology or agenda. It presents factual data on market indices and sectoral movements without commentary that would suggest a clear ideological leaning.

Why factuality (85): The article reports Nifty trading above 24,350 and pharma shares advancing. This aligns with cross-source consensus showing Nifty near that level and specific sectoral movements. The claim is consistent with other reports.

Why objectivity (85): The article presents the information objectively, noting market activity without injecting personal opinion or emotional language.

Business Standard logoBusiness StandardIndependent🔒CenterFactual 80Objective 857 days ago
Market ends higher; Nifty settles above 24,250

The Indian stock market closed higher, with the Nifty 50 index ending above 24,250. The benchmark index recorded gains amid positive investor sentiment, driven by improved economic data and cautious optimism about corporate earnings. Traders noted resilience in key sectors such as banking and finance, although volatility was observed during trading hours. The market performance reflects ongoing investor confidence despite macroeconomic uncertainties.

Bias read (Center): The article presents a factual update on market performance without overtly favoring any political ideology or agenda. It focuses on economic indicators and market trends, which are generally considered apolitical unless directly tied to government policy. The tone remains neutral, providing data on

Why factuality (80): The article states Nifty ends higher and settles above 24,250. This aligns with cross-source consensus showing Nifty fluctuating around that range. The claim is supported by multiple other articles.

Why objectivity (85): The tone remains neutral, focusing on the final settlement of the index without expressing preference or emotion.

Business Standard logoBusiness StandardIndependent🔒CenterFactual 60Objective 80yesterday
Nifty below 24,600 level; IT shares decline

The Nifty index has fallen below the 24,600 level, reflecting market volatility. Information technology shares experienced a decline, indicating concerns among investors about sector performance. The article notes broader market trends but does not provide detailed reasons for the drop or specific company impacts. No additional data or expert commentary is included in the report.

Bias read (Center): The article reports on market movements without overtly favoring any particular political stance or ideology. It presents factual updates on stock indices and sector performance without editorializing or emphasizing specific viewpoints.

Why factuality (60): The article reports that Nifty is below 24,600 and IT shares decline. However, there is no primary source to verify these claims, and the cross-source consensus shows conflicting data (e.g., some articles report Nifty above 24,550). The article lacks contextual support from other reliable sources.

Why objectivity (80): The tone remains neutral, focusing on market movements without overt bias. It presents the information as a straightforward update without emotional language or editorializing.

Business Standard logoBusiness StandardIndependent🔒Center13 hr. ago
Nifty trades below 24,550; media shares decline

The Nifty index traded below the level of 24,550, reflecting a decline in market sentiment. Media sector shares experienced a drop, indicating concerns among investors about the performance of companies within this industry. The article notes the broader implications of these movements for the stock market and investor confidence. No specific causes for the decline were detailed in the report.

Bias read (Center): The article presents factual information regarding market indices and share prices without overtly favoring any particular political stance or ideology. It focuses on economic indicators without commentary that would suggest a clear ideological leaning.

NDTV logoNDTVParty-alignedCenter14 hr. ago
Stock Market LIVE Updates, Sensex Today: Sensex, Nifty Trade Flat As RBI Keeps Repo Rate Steady

The Indian stock market remained flat as the Reserve Bank of India (RBI) decided to keep the repo rate unchanged. The decision comes amidst ongoing tensions with Iran and rising crude oil prices, which have created uncertainty in financial markets. Investors are closely monitoring economic indicators and global geopolitical developments that could impact market performance. The RBI's stance suggests a cautious approach to monetary policy in the current environment.

Bias read (Center): The article presents the RBI's decision as a neutral event, focusing on economic factors such as geopolitical tensions and oil prices. There is no overt ideological framing or emphasis on specific political agendas. The tone remains objective, reporting the situation without clear leaning towards a左

Times of India logoTimes of IndiaIndependentCenter16 hr. ago
US-Iran conflict, El Nino: Why RBI did not hike repo rate despite headwinds

The Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.25% despite rising global inflation and geopolitical tensions such as the US-Iran conflict. The decision was made after a comprehensive assessment of macroeconomic and financial conditions, with the Monetary Policy Committee (MPC) maintaining a neutral policy stance. The RBI governor, Sanjay Malhotra, noted that while inflation has risen, particularly due to fuel and food prices, the cost pressures have not yet spread widely across the economy. He emphasized that core inflation remains subdued and that the central bank expects headline inflation to peak in the third quarter of FY27 before gradually easing. The decision follows similar actions by the US Federal Reserve, which also chose not to raise interest rates amid ongoing economic uncertainties.

Bias read (Center): The article presents the RBI's decision-making process in a balanced manner, citing both the challenges posed by global inflation and geopolitical factors, as well as the central bank's rationale for maintaining stability. It does not overtly favor any particular political ideology or agenda, nor is

Scroll.in logoScroll.inIndependentCenter16 hr. ago
RBI keeps repo rate unchanged at 5.25%

The Reserve Bank of India's Monetary Policy Committee maintained the repo rate at 5.25% during its latest meeting, choosing not to adjust the rate despite recent inflationary pressures. The decision reflects a 'neutral' stance, allowing flexibility in future adjustments based on economic conditions. Inflation rose to 4.4% in June, driven by higher food and fuel costs, marking the first time it exceeded the 4% target in 16 months. Fuel prices remain elevated due to geopolitical tensions affecting global energy markets, while the potential impact of El Niño on monsoon patterns poses additional risks to agricultural output. The central bank projects GDP growth of 6.7% for the financial year 2026-27, slightly up from the previous forecast.

Bias read (Center): The article presents the RBI's decision as a technical economic assessment, focusing on data-driven reasoning rather than ideological positioning. While inflation and economic growth are politically sensitive topics, the framing remains objective, citing official statistics and avoiding overtly left

Business Standard logoBusiness StandardIndependent🔒Center17 hr. ago
Nifty below 24,600 level; FMCG shares decline

The Nifty index fell below the 24,600 level, indicating a downturn in the Indian stock market. FMCG (Fast Moving Consumer Goods) shares experienced a decline, reflecting broader market concerns. The drop comes amid ongoing economic uncertainties and fluctuating investor sentiment. Analysts suggest that macroeconomic factors and global market trends are contributing to the current volatility. Investors are closely monitoring further developments as the situation could impact sector-specific performance.

Bias read (Center): The article presents factual information about market movements without overtly favoring any particular political ideology. It focuses on economic indicators and does not take a clear stance on policy or political issues, maintaining a balanced approach.

Business Standard logoBusiness StandardIndependent🔒Center17 hr. ago
RBI keeps repo rate unchanged at 5.25%

The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%. This decision was made during the recent monetary policy review. The central bank maintained this rate despite ongoing inflationary pressures and economic growth considerations. The decision reflects the RBI's cautious approach towards managing inflation while supporting economic stability. No immediate changes were announced, indicating a stable financial environment for now.

Bias read (Center): The article presents the RBI's decision to maintain the repo rate without overtly favoring any political stance. It focuses on the technical aspects of monetary policy and does not take a clear ideological position. The framing remains neutral, providing factual information without leaning toward a左

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