The global disturbances have been affecting many nations on multiple fronts. Prices of raw materials and basic food and fuel prices saw a spike in prices. Inflation had been at an all-time high for the European economy, and this meeting in September underlined the fact that they were looking to keep inflation within a 2% band in the medium term. Keeping this in context, the central bank announced a rate hike of 25 basis points in its three interest rates.

The global economy is enduring a phase of uncertainty, combined with the oil shortage due to the war in West Asia. Considering all these factors in place, many of the central bankers across the globe have gone into caution mode- mostly a pause in the movement of interest rates.

India enters the new fiscal year in 2026; the RBI has opened its policy intervention with a word of caution. The Reserve Bank Chief Sanjay Malhotra has cautioned the markets with a “wait-and-watch” approach, keeping the interest rates unchanged at 5.25%