Economists at Barclays noted in a report that the Reserve Bank of India is likely to keep its policy stance unchanged in June. They indicated that while the central bank might raise its inflation forecast and lower its growth outlook, it should overlook the supply-driven rise in inflation. However, persistent conflicts in the Middle East leading to higher energy prices for a longer period could signal more sustained price pressures, potentially threatening Barclays' base assumption of the RBI maintaining interest rates unchanged through the remainder of 2026. The bank added that spillover effects on transportation and other raw material costs might eventually necessitate a rate hike. "Weakening economic growth would certainly influence any such decision, but for now, we are more inclined to anticipate an inflation shock rather than a growth shock."