The central risk for rupee and rate-sensitive assets is that a delayed hike leaves India more exposed to renewed oil-driven currency pressure in the interim, even as core inflation remains contained for now. ---India is betting on inflows rather than rate hikes to defend the rupee, but economists say that flexibility won't last forever. The Federal Reserve and Bank of Japan have similarly kept rates on hold. Core inflation, which strips out volatile food and fuel prices, has stayed contained near 4%. Citi's chief India economist Samiran Chakraborty said that although core and underlying inflation had risen modestly, they remained within the RBI's comfort zone, making a rate hike unlikely in 2026 unless core inflation sustains above 4.5%.