The Reserve Bank of India maintained its benchmark policy rate at 5.25 percent on June 5, 2026, marking a four-year low, while raising its inflation projection to 5.1 percent for the fiscal year ending March 2027. April inflation stood at 3.48 percent against the 4 percent target, and the central bank simultaneously lowered its growth forecast amid elevated external risks linked to the Iran crisis. The decision reflects competing pressures between supporting economic activity and managing price stability.