New Delhi, Mar 21 (KNN) The central board of the Reserve Bank of India (RBI) has reviewed the impact of evolving geopolitical developments on financial markets, amid rising global uncertainties and volatility.
At its 622nd meeting held in Patna, chaired by RBI Governor Sanjay Malhotra, the board assessed the emerging global and domestic economic scenario, including the implications of geopolitical tensions on currency, inflation and financial stability, reported Business Standard.
The review comes against the backdrop of heightened global tensions, which have led to a surge in crude oil prices, increased demand for the US dollar, and pressure on the Indian rupee. The rupee depreciated nearly 3 percent in March and touched a record low of around 93.72 against the dollar.
The RBI noted that these developments could pose challenges to the monetary policy outlook, particularly in maintaining a lower interest rate trajectory amid external inflationary pressures.
During the meeting, the board also approved the RBI’s budget for the financial year 2026–27 and cleared the Medium-Term Strategy Framework ‘Utkarsh 3.0’ for the period 2026–29.
The deliberations underline the central bank’s focus on closely monitoring global developments and their spillover effects on India’s financial markets and macroeconomic stability.
(KNN Bureau)
