RBI MPC Holds Repo Rate Steady Amid West Asia Conflict and El Niño Risks
The Reserve Bank of India's Monetary Policy Committee (MPC) kept the repo rate steady at 5.25% in June 2026, adopting a cautious 'wait and watch' stance amid uncertainties from the West Asia conflict and potential El Niño-induced monsoon disruptions. While inflation projections were raised to 5.1% for FY27 and growth forecast trimmed to 6.6%, members highlighted risks from oil import dependence, supply chain disruptions, and weather variability. The RBI emphasized vigilance on inflation generalization and the need for gradual policy adjustments as conditions evolve.