During the recent Monetary Policy Committee (MPC) meeting, Reserve Bank of India Governor Sanjay Malhotra expressed concerns about the impact of disruptions in the Strait of Hormuz on economic growth. He noted that heightened geopolitical tensions could disrupt global supply chains and energy markets, potentially leading to increased crude oil and commodity prices. The RBI decided to keep the repo rate unchanged at 5.25%, maintaining a neutral policy stance amid expectations of a global recovery following a ceasefire in the US-Israel-Iran conflict. This decision comes as the RBI faces challenges in managing inflation, with retail inflation easing to 3.21% in February, approaching the RBI's medium-term target of 4%. However, the Indian rupee has depreciated by over 4% since the conflict began, adding pressure on import-driven inflation. Following the ceasefire announcement, the rupee appreciated by 50 paise to 92.56 against the US dollar, highlighting the currency's volatility in response to geopolitical events.