RBI holds India's repo rate at 5.25% citing global risks
The Reserve Bank of India, or the RBI, just hit pause on changing interest rates, keeping the repo rate at 5.25%.
But there's a heads-up: rising global energy prices, possible El Nino weather shifts, and tensions in West Asia could push up prices and make things tricky for India's economy.
Still, RBI Governor Sanjay Malhotra is confident the country can handle these bumps.
RBI forecasts 6.9% GDP, 4.6% inflation
The RBI expects India's gross domestic product growth to slow a bit—from 7.6% in FY 2025-26 to 6.9% in FY 2026-27, with retail inflation averaging around 4.6%.
While global conflicts might hurt exports and energy supplies, strong sectors like services and agriculture are expected to help keep the economy moving forward.
The RBI says it will keep watching global trends closely and adjust plans as needed to support steady growth.