RBI buys bonds as Iran war threatens economic outlook
Economists expect central bank to stay on hold, despite risk of higher inflation and lower growth
India’s central bank has intervened to cap rising bond yields amid the ongoing fallout from the conflict in the Middle East.
The Reserve Bank of India (RBI) conducted open market operations worth 500 billion rupees ($5.4 billion) on March 9 as the US and Israel continued their co-ordinated strikes on Iran and the Islamic republic launched attacks on countries across the Gulf. The RBI said it would conduct open market operations worth the same amount on March 13.
DBS economist Radhika Rao said in
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Pakistan holds rates, citing uncertainty from Iran war
Central bank expects inflation to remain above its 5–7% target
Central Bank of West African States eases policy by 25bp
BCEAO says negative inflation prompted decision, but expects prices to rise in 2026
ECB has ‘no reason’ to hike as ‘2026 is not 2022’ – BdF head
Villeroy de Galhau first eurozone governor to speak about war’s potential impact on inflation
Poland cuts rates against backdrop of falling inflation
Central bank lowers projections for price growth, while warning of geopolitical uncertainty
Asian central banks prepare for conflict-induced energy shock
IMF’s Georgieva says Iran war creates energy and confidence risks for most of region
BoJ’s path to normalisation less certain with Iran conflict
Ueda suggests rate hikes will continue, but analysts point to a range of possible scenarios
How will Europe’s central banks react to the Middle East crisis?
ECB unlikely to veer from rate path as it had expected to undershoot during 2026
RBA governor says conflict may require monetary policy response
Bullock says board considering potential supply shocks amid already high levels of inflation