RBI Holds Repo Rate Steady at 5.25%, Projects 6.7% Growth for FY27 Amid Middle East Crisis

RBI kept the repo rate unchanged at 5.25%, maintaining a neutral stance after a series of policy meetings, signaling confidence in inflation control while supporting economic growth.

Governor Sanjay Malhotra announced a 6.7% growth projection for FY27, citing robust domestic demand and resilient exports, and noted that the Middle East crisis had limited impact on the outlook.

Financial institutions adjusted fixed‑deposit rates following the decision, with several banks raising rates by 0.5% to 1.0% to attract deposits, reflecting market reactions to the unchanged repo rate.

Borrowers and EMIs are unlikely to see immediate rate hikes, as RBI signals no tightening, but lenders may adjust loan rates slightly in response to changing cost of funds and competitive pressures.