RBI expected to hold repo rate at 5.25% as West Asia tensions rise

The Reserve Bank of India's six-member Monetary Policy Committee will meet from June 3‑5, with Governor Sanjay Malhotra set to announce the decision on June 5. Experts say the RBI is likely to keep its key repo rate unchanged at 5.25% despite rising energy prices, a weakening rupee and supply‑chain disruptions linked to the West Asia conflict. They note that inflation pressure is largely on the supply side and that the central bank may raise its CPI‑based inflation outlook to around 5% while trimming its GDP growth forecast to about 6.5%. A report from SBI’s Economic Research Unit and comments from Bank of Baroda chief economist Madan Sabnavi and CRISIL chief economist Dipti Deshpande also point to a