RBI holds repo rate at 5.25% citing caution and clarity
Business
The Reserve Bank of India decided not to change its repo rate, sticking with 5.25% for now.
With inflation still rising and global uncertainties in play, the RBI says it is taking a cautious approach and wants to keep things clear for everyone.
Inflation 5.1% growth 6.6% rupee support
The inflation forecast for the current fiscal (2026-27) is bumped up to 5.1%, with higher expected core inflation playing a key role.
Meanwhile, expected economic growth for the current fiscal (2026-27) has been revised down to 6.6%, as expensive inputs slow things down.
To help the rupee stay strong, the RBI is rolling out other measures and the government's decision to provide capital gains tax relief for foreign investors in government securities.