The Reserve Bank of India on Wednesday held the repo rate steady at 5.50% during its third bi-monthly monetary policy meeting for FY26, while maintaining a neutral stance. The move comes amid global tariff uncertainties triggered by US President Donald Trump’s recent policy shifts.
RBI Governor Sanjay Malhotra reaffirmed confidence in India’s economic resilience, stating that the country holds “bright prospects in a changing world order.” He noted that the overall setting is favourable, supported by both the central bank and government, and geopolitical uncertainties have somewhat abated. “Opportunities are there for the taking, and we are creating an enabling environment,” Malhotra added.
The central bank has retained its real GDP growth projection for FY2025-26 at 6.5%, with quarterly estimates at:
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Q1: 6.5%
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Q2: 6.7%
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Q3: 6.6%
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Q4: 6.3%
The GDP growth for Q1 of FY27 is projected at 6.6%. The RBI noted that risks to the outlook are “evenly balanced.”
The Monetary Policy Committee (MPC), which met from August 4 to 6, also hinted that inflation forecasts may be revised downward, while continuing to support a stable and growth-oriented policy path.
