Tag: Middle East conflict

  • RBI Holds Repo Rate Steady at 5.25% Amid Middle East Tensions

    RBI Holds Repo Rate Steady at 5.25% Amid Middle East Tensions

    The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, maintaining a cautious stance as inflation risks and global uncertainties persist due to the ongoing conflict in the Middle East.

    The decision was announced following a three-day meeting of the Monetary Policy Committee (MPC), which concluded on Wednesday. The six-member panel, led by Governor Sanjay Malhotra, voted unanimously to hold the rate steady. The MPC also retained its monetary policy stance as ‘neutral,’ signaling that future moves will be guided by incoming economic data.

    In addition to the repo rate, the RBI kept the Standing Deposit Facility (SDF) rate unchanged at 5% and the Marginal Standing Facility (MSF) rate along with the bank rate at 5.5%.

    Governor Malhotra noted during the announcement, “Crude oil prices, currencies, and financial markets remain volatile, fluctuating in line with the changing intensity and uncertainties of the West Asia conflict. In this backdrop, the MPC met for its third bi-monthly meeting of this financial year to deliberate and decide on the policy.”

    The central bank last adjusted the repo rate in December 2025, when it was lowered from 5.50% to 5.25%. Since then, the RBI has held rates steady, aiming to balance inflation control with support for economic activity.

    By keeping the repo rate unchanged, the RBI hopes to prevent inflation from accelerating further without putting excessive pressure on economic growth. The repo rate is the key interest rate at which the RBI lends to commercial banks, directly influencing loan and deposit rates across the economy.

  • FTSE 100 Slips to 10,600 as US Strikes on Iran Drive Brent Crude Above $75

    FTSE 100 Slips to 10,600 as US Strikes on Iran Drive Brent Crude Above $75

    The FTSE 100 opened 65.2 points lower at 10,600.86 on Wednesday, as fresh US military strikes on Iran triggered a spike in oil prices. Brent crude futures surged 2.22% to $75.81 a barrel, while US West Texas Intermediate (WTI) rose 2.10% to $71.92 a barrel. The escalation followed drone attacks on commercial vessels in the Strait of Hormuz.

    Sterling weakened against the dollar, trading at $1.3355, down from $1.3376 at Tuesday’s London close. Against the euro, the pound slipped to €1.1693 from €1.1704.

    Gainers & Losers

    Energy stocks led the upside: BP gained 1.80% to £483.10, Shell added 0.71% to £3,032.50, and Centrica rose 0.68% to £170.65. Lion Finance Group advanced 1.65% to £11,730, while Burberry Group edged up 0.63% to £1,112. Scottish Mortgage Investment Trust climbed 0.27% to £1,469.50.

    On the downside, Games Workshop Group fell 2.40% to £20,300, and Spirax Group dropped 1.84% to £6,390. Rio Tinto declined 1.54% to £6,720, while AstraZeneca slipped 1.04% to £14,214. London Stock Exchange Group lost 1.02% to £8,942, and Coca-Cola Europacific Partners eased 1.12% to £7,980.

    Jet2 Gains £400 Million Boost from Rising Fuel Prices

    Jet2 reported a £400 million balance sheet boost from rising jet fuel prices, defying travel disruption from the Middle East conflict. The AIM-listed package holiday provider said the additional £388 million in income stemmed from favorable fair value movements in jet fuel derivatives as market pricing increased amid escalating regional tensions. Jet2 has already sold 19.9 million seats for this summer, a 7% increase year-on-year.

    ABF Completes £75 Million Hovis Takeover

    Associated British Foods has completed its £75 million acquisition of Hovis, merging the bakery with its own Allied Bakeries division. The combined entity will operate as Hovis Bakeries starting today. ABF said the deal will generate substantial production and distribution savings, though it expects an initial earnings hit this year. CEO George Weston commented: “The transaction will support the wider UK economy, including by securing high-quality jobs.” ABF shares opened flat at £1,966.

    Vistry Warns of First-Half Loss

    Vistry Group warned it expects to report a first-half loss after its new CEO accelerated debt-reduction and stock-cutting measures. The housebuilder forecast a pre-tax loss of around £30 million for the six months to June 30, reflecting a £50 million hit from heavier discounts on slower-selling homes, asset sales, and landbank reductions. Excluding these measures, the company would have posted about £20 million in pre-tax profit — a sharp decline from the £260 million-plus recorded in each of the past two years.

    Global Market Overview

    In the US, semiconductor stocks led a sell-off, with the Nasdaq falling 1.2%, the S&P 500 down 0.5%, and the Dow Jones slipping 0.3%.

    Asian markets were mixed on Wednesday. Tokyo’s Nikkei 225 dropped 2.11% to 66,819.05, while China’s Shanghai Composite lost 0.49%. Hong Kong’s Hang Seng rose 2.96%, and Australia’s S&P/ASX 200 slipped 0.21%. In India, the Nifty 50 fell 0.74% and the Sensex declined 0.76%.

    This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.