Reserve Bank of India Holds Repo Rate at 5.25% and Boosts Growth Forecast to 6.7%

Reserve Bank of India kept the repo rate at 5.25% in its latest monetary policy meeting, signalling no immediate easing and maintaining borrowing costs for banks, while emphasizing a data‑driven approach amid still‑elevated price pressures.

Monetary Policy Committee members, led by Governor Shaktikanta Das, noted a downward revision of the inflation outlook, cutting the forecast to 5% for FY27, citing lower oil imports and a tighter fiscal stance that should curb demand.

Inflation is projected to average 5% next year, down from the earlier 5.5% estimate, yet core inflation stays above the 4% target, prompting the board to keep a cautious stance and monitor supply‑side shocks.

Economy growth projection was lifted to 6.7% for FY27, up from 6.5%, as the RBI expects stronger private consumption, rising export orders and continued infrastructure spending, aiming to sustain momentum while avoiding overheating.