The Reserve Bank of India has kept the policy repo rate unchanged at 5.25 per cent, maintaining a neutral stance.
The Monetary Policy Committee of the Reserve Bank of India has decided to keep the policy repo rate unchanged at 5.25 per cent. RBI Governor Sanjay Malhotra announced that India’s real GDP growth for FY27 is projected at 6.7 per cent, which is 10 basis points higher. The CPI inflation projection has been lowered to 5 per cent from 5.1 per cent for FY27.
The Governor of the Reserve Bank of India, Sanjay Malhotra, further said that the renewed West Asia conflict since early July has heightened energy price volatility and supply-chain uncertainties. Despite global headwinds, India’s economy remains resilient, backed by strong first-quarter indicators and demand. He emphasized that India continues to remain the fastest-growing economy.
The RBI Governor further said that trade moderation, energy costs, and policy uncertainties pose risks to the current account. Market volatility and El Niño conditions also threaten growth, while global growth expansion is set to soften.
