The Reserve Bank of India has kept the repo rate unchanged at 5.25% for the second consecutive monetary policy meeting, as policymakers assessed the impact of rising crude oil prices and supply disruptions stemming from the ongoing West Asia conflict.

Announcing the second bi-monthly policy of FY27, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) unanimously voted to maintain the policy rate while retaining a neutral policy stance.

The decision comes against the backdrop of a prolonged conflict in West Asia that has disrupted global energy supplies and pushed crude oil prices higher, increasing inflationary and fiscal risks for oil-importing economies such as India.

The RBI's move reflects a cautious approach, balancing the need to support economic growth while remaining vigilant about inflation risks arising from elevated commodity prices and geopolitical uncertainties.