Inflation target for fiscal year 2027 was cut to 5% from earlier expectations, reflecting the MPC’s downward revision and aligning

RBI says low inflation creates room for easing, governor Sanjay Malhotra told press conference, noting consumer price growth has slipped below 4% in recent months, easing pressure on monetary stance and could allow a modest rate cut later this year.

Inflation target for fiscal year 2027 was cut to 5% from earlier expectations, reflecting the MPC’s downward revision and aligning with the central bank’s goal of price stability.

Policy decision kept the repo rate unchanged, marking the third consecutive pause; the board described its stance as neither dovish nor hawkish, signalling caution amid steady growth. The unchanged repo rate maintains borrowing costs at the current level, supporting credit growth while avoiding premature tightening.

Watchlist includes five key indicators—core inflation, credit growth, fiscal deficit, global rate trends, and exchange‑rate movements—that analysts