The Reserve Bank of India (RBI, India's central bank) voted unanimously on 5 June 2026 to keep its benchmark repo rate unchanged at 5.25% for the second consecutive meeting, citing the ongoing West Asia conflict as a source of simultaneous pressure on both inflation and growth. Governor Sanjay Malhotra said the bank had lowered its GDP growth forecast for the 2026–27 fiscal year to 6.6% from 6.9%, while raising its inflation projection to 5.1% from 4.6%, as elevated oil prices — averaging around $110 per barrel — and global supply chain disruptions filter through to domestic costs. To cushion the rupee and shore up foreign capital inflows, the RBI also announced a package of measures including liberalised rules for foreign portfolio investment in government bonds and higher equity investment limits for non-resident Indians, moves that helped the rupee appreciate 50 paise to 95.24 against the US dollar shortly after the announcement.