India's growth may face headwinds due to any setback to the US-Iran peace deal or agreement and an adverse southwest monsoon, as the global economic landscape remains fragile, the Reserve Bank Bulletin said on Monday. Geopolitical tensions and trade disruptions persisted despite the recent interim peace deal in West Asia, said an article on State of the Economy published in the June Bulletin. The global economic landscape remains fragile despite some respite gained through the interim US-Iran peace agreement, the article said. An adverse south-west monsoon, if materialised, may weigh on the domestic growth inflation outlook, it further noted. The Monetary Policy Committee in its bi-monthly review of June 2026, unanimously decided to keep the policy repo rate unchanged at 5.25 per cent and retained a 'neutral' stance while waiting for more clarity on the West Asia conflict situation and the risks from a likely sub-normal south-west monsoon and El Ni'o event.

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