The Reserve Bank of India (RBI) has decided to maintain its benchmark repo rate at 5.25% during its latest Monetary Policy Committee meeting, marking its first policy decision since the outbreak of conflict in the Middle East. This decision comes as the RBI faces challenges from a sharply depreciating rupee, which has fallen by 7.6% over the past year, making it the worst-performing currency in Asia. Governor Sanjay Malhotra noted that while the economy was previously in a favorable 'Goldilocks' phase, the ongoing energy crisis has complicated the outlook. The RBI has implemented measures to stabilize the rupee, including capping banks' currency positions. Economists have warned that if energy prices continue to rise, the RBI may have to consider increasing rates by 25-50 basis points. Current growth forecasts have also been revised, with Goldman Sachs projecting a growth rate of 5.9% for the calendar year, and Standard Chartered lowering its forecast for the current financial year to 6.4%.