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Iran war to weigh more on Indian growth than inflation, keeping interest rates low

MUMBAI, March 5 (Reuters) The U.S. and Israels attack on Iran is expected to weigh more on Indias economic growth than its inflation, which will encourage the Reserve Bank of India to keep interest rates low, three sources familiar with policymakers thinking and analysts said. The conflict, which has rippled out across much of the Middle East, has pushed up oil prices by about 15%, disrupted gas flows from the region and triggered selloffs in Indian equity, debt and currency markets, with the rupee hitting a record low and bond yields rising due to concerns about Indias current account

5 Mar 2026 4:38 pm