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External member of Reserve Bank of India’s Monetary Policy Committee (MPC) Saugata Bhattacharya has said that chances of benchmark interest rate going up are negligible in the near term despite growing inflation on account of geopolitical tensions. He stated rising metal prices, elevated crude oil costs and weather-related risks amid geopolitical tensions will weigh on the consumer price inflation (CPI) going forward. 

In the policy meet earlier this month, Bhattacharya and the five other members of the MPC voted unanimously to keep the repurchase, or repo rate, at 5.25%. The RBI retained its neutral policy stance, signalling rates will stay low for some time. 

The RBI has slashed rates by a total of 125 basis points since February 2025, marking its most aggressive easing cycle since 2019. It reduced rates by 25 basis points at its December meeting. The RBI kept the rate unchanged in the August, October and February 2026 monetary policies. On the inflation front, Bhattacharya said CPI is expected to climb towards the 4% target in H1 FY27.