Many investors are grappling with the uncertainty caused by the West Asia conflict. The objectives are unclear and the mixed messaging from the US administration is keeping Iran, as well as the global economy and markets, on tenterhooks.
Policy Action
The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 5.25%.
The announcement of the reciprocal tariffs by the US administration has roiled markets worldwide. Equities have sold off due to concerns about the outlook for economic growth. We know from experience that lingering uncertainty can cause businesses and consumers to put their decisions regarding investments and consumption on hold.
