On Friday, the Reserve Bank of India (RBI) announced that its Monetary Policy Committee (MPC) will keep the repo rate unchanged at 5.25%, marking the third consecutive policy review without alterations. RBI Governor Sanjay Malhotra highlighted increased risks to inflation and growth due to ongoing global conflicts, prompting the MPC to raise its Consumer Price Index (CPI) inflation forecast for FY27 from 4.6% to 5.1%. Quarterly projections for inflation indicate a potential rise, with CPI inflation reaching 3.5% in April 2026, primarily driven by food prices. The MPC also projected real GDP growth for FY27 at 6.6%, noting resilient private consumption and robust services exports. However, it cautioned that high energy prices, supply disruptions, and a forecasted deficient monsoon could negatively impact economic activity. The committee emphasized the need for data-driven decisions and will continue to monitor inflation expectations and supply-side pressures closely.