In its April meeting, the Reserve Bank of India (RBI) decided to maintain the repo rate at 5.25%, reflecting a cautious stance in light of global economic uncertainties. The Monetary Policy Committee (MPC) noted that the economy is facing supply shocks, particularly from the ongoing conflict in West Asia, which has led to rising energy prices and affected various sectors. The RBI projects inflation to reach 4.6% by 2026-27 and has revised its growth forecast down to 6.9% for the current year, compared to an earlier estimate of 7.6%. The committee highlighted that further escalation of the conflict and volatility in global markets pose risks to domestic growth. Following a ceasefire agreement, global markets saw significant gains, with indices such as the Nikkei 225 and Sensex rising notably. The RBI's future monetary policy actions will hinge on how the growth and inflation landscape evolves in the coming months.