New Delhi, Aug. 6 -- Better-than-expected growth, lower-than-expected inflation, and healthy foreign exchange reserves -- that's the summary view of the Monetary Policy Committee (MPC) of the Reserve Bank of India at its latest meeting on Wednesday, and it suggests that the economy negotiated the turbulence of the war in West Asia, and the consequent spike in oil prices well. The Indian economy has performed better than expected in the June quarter in terms of growth, with an estimated expansion of 7% according to the Reserve Bank of India . Inflation, while it has increased, is lower than expected, and more importantly, does not suggest widespread price pressures in the economy beyond food and fuel. India's external balance situation has improved as well compared to two months ago and is nowhere close to a crisis. To be sure, these developments, while definitely good news for the economy, do not rule out headwinds and uncertainties from the ongoing war in West Asia and the fallout of what is likely to be a deficient monsoon. The benign macroeconomic situation seems to have convinced MPC to unanimously decide against any major change in its monetary policy toolkit. Both the policy rate and policy stance remain unchanged at 5.25% and neutral. Experts saw the decision as being on expected lines. The Indian economy is expected to grow at 7% in the quarter ending June 2026 as per MPC's estimates, ruling out any large economic disruption on account of the war in West Asia, which has also inflicted the largest oil shock in the history of capitalism. This impressive growth performance- MPC's June forecast was 6.6% for this quarter - was accompanied by an inflation of 4.4%, not only 30 basis points (one basis point is one hundredth of a percentage point) lower than expected but also mostly confined to food and fuel, ruling out widespread inflation contagion from the war. MPC's annual growth and inflation forecasts for 2026-27 now stand at 6.7% and 5%, a favourable revision of 10 basis points from its June forecast. Quarterly growth and inflation projections for the quarters ending September 2026, December 2026, March 2027 and June 2027 are 6.4%, 6.5%, 6.8%, 7.3% and 4.7%, 5.9%, 5.5%, 5.3% respectively. To be sure, MPC was widely seen as holding rates in its latest meeting and most analysts do not see a rate change even in the rest of calendar year. What was more keenly awaited was its take on the overall economic situation, not just in terms of the usual growth-inflation dynamic but also the external balance situation. On all of these fronts, the MPC resolution and the RBI Governor's statement show a high degree of comfort and confidence despite lingering headwinds and uncertainties. "To conclude, global economic conditions and sentiments continue to remain hostage to the rapidly oscillating developments, both in scale and intensity, of the West Asia conflict," Governor Sanjay Malhotra said in his post-MPC statement....