The Reserve Bank of India (RBI) today announced its bi‑monthly Monetary Policy, keeping the repo rate unchanged at 5.25% with a neutral stance.
The central bank revised India’s GDP growth forecast for FY27 down to 6.6% from 6.9%, while raising inflation projections to 5.1% due to global crude shocks and rupee depreciation.
Global geopolitical tensions, including the US–Iran conflict, have pushed crude oil assumptions to $95 per barrel, adding pressure on domestic inflation.
Since February 2025, RBI has cut repo rates by 125 basis points, but has paused further easing since December 2025, reflecting caution amid global uncertainties.
Markets reacted positively, with Sensex climbing over 300 points and Nifty trading near 23,494, as investors welcomed policy stability.
For households, EMIs remain steady, but rising inflation could impact everyday expenses, making RBI’s balancing act between growth and price stability crucial.
