Finance Minister Nirmala Sitharaman stated that the Reserve Bank of India (RBI) has room to lower interest rates and provide targeted support to sectors in distress ahead of the April 8 Monetary Policy Committee meeting. The last repo rate cut occurred on December 5, 2025, when the rate was reduced from 5.50% to 5.25%. Sitharaman emphasized the need for 'smart' public borrowing strategies as India navigates global economic volatility, particularly due to ongoing geopolitical tensions in the Middle East, which she described as a 'systemic tremor' threatening energy supply chains. Despite these signals for potential easing, market analysts predict that the RBI may hold the benchmark rate steady at 5.25%, reflecting caution amid heightened uncertainties. A recent Reuters poll indicated that most economists expect the RBI to maintain its current stance, given the implications of the Iran conflict on currency and bond markets. The RBI has already implemented cumulative rate cuts of 125 basis points through 2025, pausing in February as it assessed the economic landscape.