Global economic sentiment has weakened due to recent events. A conflict in West Asia has escalated, affecting crude oil prices. This development has heightened financial market volatility.

The global economy is showing resilience, but risks are present. Elevated valuations of certain assets are a concern, along with geopolitical tensions and high debt levels.

Further details on these risks and their potential impact are available from the Reserve Bank of India's Monetary Policy Statement for 2026-27.