Reserve Bank of India Governor Sanjay Malhotra stated that, given the current geopolitical uncertainties, it is too early to discuss raising interest rates, and noted that future decisions will depend on upcoming data releases.

Malhotra stated: "If we were certain that interest rates would be raised in the coming months, we would have shifted our monetary policy stance from neutral to tightening long ago, right? But we haven’t done so, precisely because there is currently a high degree of uncertainty." This statement comes as peace talks between the US and Iran are still ongoing, and the negotiations have led to a sharp drop in crude oil prices, which is undoubtedly a huge positive for India, a country that relies on imports for 90% of its oil. Malhotra said: "The ceasefire agreement itself is very fragile, and it will take some time for oil supplies to fully recover. Although the upside risks have indeed decreased, we still need to closely monitor the final trend of crude oil prices."