The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25% during its recent monetary policy committee meeting, a move that aligns with market expectations. RBI Governor Sanjay Malhotra stated that the decision was made unanimously after two days of deliberations. This decision comes in the context of global economic uncertainty, particularly due to rising energy prices and geopolitical tensions stemming from the Iran conflict. The RBI has noted that while headline inflation remains contained below its target of 4%, there are risks associated with food prices, potentially exacerbated by weather disturbances. The central bank also projected that India's GDP growth for the fiscal year 2027 would ease to 6.9%. Additionally, India's foreign exchange reserves are robust at $697.1 billion, providing a buffer against economic shocks. The RBI's cautious stance reflects a prudent approach to navigating the current economic landscape.