RBI Holds Repo Rate at 5.25% While Fitch Raises FY27 GDP Forecast to 6.9%

RBI holds repo rate steady at 5.25%, keeping monetary policy unchanged after a year of incremental hikes. The decision follows a meeting chaired by Governor Shaktikanta Das and MPC members, including Sanjay Malhotra. The unchanged rate signals confidence in inflation containment.

Fitch upgrades India’s FY27 GDP growth forecast to 6.9% from 6.5%, citing stronger domestic demand and resilient manufacturing. The upgrade reflects expectations of a robust rebound after the pandemic slowdown and supports the RBI’s outlook of continued growth.

RBI also confirmed that the special foreign‑exchange deposit window will close on schedule, with strong inflows and a projected current‑account surplus of about 3.5% of GDP in FY27. The bank’s stance aims to maintain foreign‑exchange stability while supporting export growth.

Markets reacted mildly, with the Indian rupee trading near its 2024 low against the dollar and bond yields holding steady. Analysts say the rate decision and growth upgrade could lift investor sentiment, but caution that global uncertainties may temper enthusiasm.