Mumbai, April 8 -- The Reserve Bank of India (RBI) on Wednesday said it has assumed an average crude oil price of $85 per barrel for FY 2025-26, in line with its CPI inflation projection of 4.6 per cent.

RBI Governor Sanjay Malhotra shared the estimate during a press conference after the Monetary Policy Committee decided to keep the repo rate unchanged at 5.25 per cent. He added that the crude oil price assumption for FY 2027-28 is $75 per barrel.

The projection follows the announcement of a temporary ceasefire between the United States and Iran. During the month-long conflict in West Asia, crude oil prices had surged to nearly $120 per barrel. As of 0130 IST, Brent crude was trading over 13 per cent lower at $94.68 per barrel. The ceas...