The Reserve Bank of India's Monetary Policy Committee on Wednesday voted unanimously to keep the repo rate unchanged at 5.25 per cent.
While delivering the RBI rate verdicts, Governor Sanjay Malhotra also sparked a ray of hope for Indians as the central bank lifted GDP forecast for fiscal year 2027 and trimmed inflation target.
However, amid those cheers is a warning that RBI may have flagged.
"Global economic conditions and sentiments continue to remain hostage to the rapidly oscillating developments, both in scale and intensity, of the West Asia conflict," Malhotra said. He also flagged risks from fresh Trump tariffs.
In another stark warning, the RBI flagged risks to India's agriculture sector which employs over 46% of the workforce in India and contributes nearly 18% to the country's GDP.
