Reserve Bank of India Holds Repo Rate at 5.25 Percent, Projects 6.9 Percent GDP Growth

Reserve Bank of India released its first bi‑monthly monetary policy statement for FY 2026‑27, keeping the repo rate unchanged at 5.25% and emphasizing that inflation remains within the target band despite external price pressures.

Monetary Policy Committee chaired by Sanjay Malhotra noted that the RBI now projects real GDP growth of 6.9% for the current fiscal year, a lift from earlier estimates and a signal of a brighter economic outlook.

Inflation Outlook was described as “moderately contained,” with food‑price pressures easing, allowing the MPC to adopt a neutral stance and keep policy levers steady while monitoring global commodity trends and exchange‑rate movements.

Market Reaction showed the rupee holding near its recent level and government‑bond yields staying flat, as investors absorbed the unchanged rate and the upbeat growth forecast, indicating confidence in the RBI’s policy direction.