Reserve Bank of India Holds Repo Rate Steady While Projecting 6.9% GDP Growth

RBI kept the repo rate unchanged in its latest monetary policy meeting, citing that low inflation provides room for stability and projecting real GDP growth of 6.9% for the current fiscal year.

Monetary Policy Committee members highlighted that inflation remains within the target band, allowing the board to focus on supporting growth without immediate tightening, and to keep borrowing costs affordable for businesses, according to the official press release.

Analysts such as JPMorgan predict a possible 50 basis‑point hike by December if global rate pressures rise, while a Reuters poll suggests the RBI may hold rates steady through 2026 as growth risks outweigh inflation concerns.

Currency Markets noted that the U.S. Federal Reserve’s recent 25‑basis‑point increase could pressure the rupee, but the RBI’s steady stance aims to cushion volatility and maintain investor confidence.