The Reserve Bank of India (RBI) has decided to keep the repo rate steady at 5.25%, reflecting a neutral policy stance amid global uncertainties stemming from the ongoing conflict in West Asia. RBI Governor Sanjay Malhotra stated that low rates could continue in the short to medium term, despite rising oil prices and pressures on the Indian rupee. The RBI's Monetary Policy Committee (MPC) has projected economic growth for FY26 at 7.6%, slightly higher than previous estimates, while acknowledging that real GDP growth for FY27 is expected to be 6.9% due to potential disruptions in energy supplies. Inflation for FY27 is forecasted at 4.6%, with core inflation estimated at 4.4%. The Indian rupee appreciated to 92.58 against the dollar, aided by the absence of hawkish signals from the RBI. Malhotra emphasized India's stronger macroeconomic fundamentals compared to previous crises, asserting that the country is well-positioned to handle external shocks. The RBI also highlighted the resilience of remittance flows, particularly from the United States, which is now the largest source of inward remittances into India.