The Reserve Bank of India (RBI) keeps the repo rate unchanged at 5.25% while revising its inflation outlook. In its monetary policy assessment, the Monetary Policy Committee (MPC) lowers the FY27 CPI inflation forecast to 5% from 5.1%. The RBI says the projection factors in expected trends in prices and conditions that influence inflation in India. At the same time, it highlights that risks remain, particularly from food and fuel prices. The RBI points to the role of rainfall patterns in shaping food inflation and notes uncertainty linked to volatile global oil prices, which can affect fuel costs and broader inflation dynamics. The RBI’s statement reflects a balance between the updated inflation forecast and the possibility of shocks that could move prices away from the target range. Overall, the policy decision maintains the current interest rate stance while adjusting the inflation estimate for FY27 and warning of specific external and domestic factors that could drive future price pressures.