Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%, while the Marginal Standing Facility and Bank Rate remain steady at 5.50%. Governor Shaktikanta Das underlined that inflation risks are rising due to higher energy prices and weather-related disruptions. He also cautioned that the ongoing conflict in West Asia could weigh on growth and worsen inflation, especially if energy infrastructure suffers lasting damage.
Despite these global challenges, India’s economy continues to show resilience. High-frequency indicators up to February point to strong momentum in domestic activity. The government has taken several measures to protect exports and supply chains, which should help soften the impact of external shocks.
The RBI governor further noted that the Q1 FY27 GDP growth estimate has been slightly revised down to 6.8% from 6.9% earlier. This adjustment reflects caution amid global uncertainties, though the overall growth outlook remains robust.
In essence, the RBI is striking a careful balance supporting growth while staying vigilant against inflationary pressures. With energy markets volatile and geopolitical tensions high, the central bank’s steady policy stance aims to safeguard stability while remaining flexible to respond to emerging risks.