The domestic economic fundamentals remain resilient, but inflationary pressures have heightened amid the persistent stand-off in the Gulf region.
Upside risk to inflation, fiscal and current account deficits and downside risk to growth remain, the Finance Ministry had said last month.
Crude prices have been volatile, amid the impasse over the progress on US-Iran deal.
RBI Governor Sanjay Malhotra has reiterated to maintain a broad policy stance by avoiding firm commitments on the future path of policy in times of uncertainity and adopt a data driven approach.
India’s Retail inflation based on Consumer Price Index rose to 4.38 per cent in June 2026, but remain within RBI’s upper tolerance band of 6 per cent.
It would be interesting to see whether the RBI maintains its accommodative stance and adopts an wait and watch approach.