The Reserve Bank of India maintained its key policy rate at 5.25% due to ongoing West Asia tensions, warning of supply chain disruptions impacting inflation and growth. Projections for GDP and inflation remain within targets, though geopolitical uncertainty poses downside risks. Markets reacted positively to the news.
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Equity markets saw broad-based selling pressure after weak monsoon forecasts raised concerns over food inflation, though falling crude oil prices and easing bond yields helped