RBI holds repo rate at 5.25% while flagging fuel spillovers
Business
The RBI is holding the repo rate at 5.25%, even as inflation creeps up, thanks in part to pricier gasoline and diesel.
Governor Sanjay Malhotra flagged the risk of rising fuel costs spilling over into broader inflation, but said the central bank will keep watching the data and stay neutral for now.
RBI forecasts 5.1% inflation 6.6% GDP
Conflict in West Asia has pushed oil prices up to $126 a barrel and sent the rupee to a record low.
Deputy Governor Poonam Gupta mentioned that peace could help ease both inflation and growth worries.
The RBI now expects inflation to hit 5.1% (up from 4.6%) by fiscal 2027, while GDP growth is forecast at 6.6%.