Pioneer In Short
RBI holds rates amidst inflation
The Reserve Bank of India (RBI) on Wednesday left the policy repo rate unchanged at 5.25 per cent for the fourth consecutive meeting, choosing to wait for greater clarity on whether higher energy costs from the West Asia conflict translate into broader inflationary pressures. The six-member Monetary Policy Committee, led by Governor Sanjay Malhotra, unanimously retained both the repo rate and its “neutral” policy stance. The RBI said inflation is expected to rise in the near term, peaking in the third quarter of 2026-27 on food and fuel prices before easing, while stressing that core inflation remains contained. The central bank marginally lowered its full-year inflation forecast to 5 per cent from 5.1 per cent and raised its GDP growth projection to 6.7 per cent from 6.6 per cent, citing domestic demand, manufacturing, services and exports.
Malhotra said uncertainty persists due to geopolitical tensions, trade disruptions, monsoon risks and possible El Niño conditions, adding that policy decisions would remain data-dependent. The RBI said liquidity conditions remained comfortable, India’s external sector was resilient, backed by strong services exports and remittances, and foreign exchange reserves stood at $692.9 billion as of July 31. It also announced measures for cooperative banks and proposed a uniform framework for lending interest rates to strengthen transparency and consumer protection.
Air India gets new CEO
Air India on Wednesday appointed former Ethiopian Airlines Group chief Tewolde Gebremariam as its Chief Executive Officer and Managing Director, succeeding Campbell Wilson and marking another leadership change since the Tata Group acquired the airline in 2022. An Ethiopian national, Gebremariam becomes Air India’s second foreign CEO. He takes charge as the airline enters a crucial phase of expansion, seeking to transform itself into a leading global carrier amid operational and market challenges. Air India said Gebremariam is widely regarded as one of the aviation industry’s most successful executives. During his decade-long tenure at Ethiopian Airlines Group, he oversaw a multi-billion-dollar expansion that turned the carrier into Africa’s largest and most profitable airline group, with revenue growing more than fourfold and the fleet nearly tripling. Tata Sons and Air India Chairman N. Chandrasekaran said the airline had completed its initial stabilisation and integration under Wilson and was now entering an execution-focused growth phase. He said Gebremariam’s operational expertise, safety focus and experience in developing global aviation hubs made him the right choice to lead Air India’s next chapter. The appointment follows a global search by the airline’s board. With Willie Walsh recently taking charge at IndiGo, India’s two largest airlines are now headed by foreign CEOs.
