The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5.25%, reflecting a cautious stance in light of global economic uncertainties. The decision comes as geopolitical tensions, particularly in West Asia, continue to disrupt energy markets and raise inflation concerns. The MPC anticipates India's growth will decline from 7.6% in 2025-26 to 6.9% in 2026-27, while inflation is expected to more than double from 2.1% to 4.6%. This decision aligns with other major central banks, including the US Federal Reserve and the European Central Bank, which have also opted to maintain their rates amid varying economic conditions. The RBI acknowledges that while retail inflation remains contained, there are significant risks due to rising energy prices and potential supply chain disruptions. The MPC emphasizes the need for a prudent approach, advising to 'wait and watch' the evolving economic landscape as it navigates these unprecedented challenges.