RBI holds repo rate at 5.5%: What's the impact
The Reserve Bank of India just kept the repo rate unchanged at 5.5%, choosing stability while facing global trade hiccups and tariff challenges.
RBI Governor Sanjay Malhotra shared that the current economic climate still leaves space to support growth, even with some bumps ahead.
GDP growth forecast raised to 6.8%
Despite worries about export slowdowns, the RBI actually raised its GDP growth forecast for 2025-26—from 6.5% up to 6.8%.
They're betting that GST tweaks will help balance out any rough patches later this year.
Banking reforms on the table
RBI also rolled out 22 new banking reforms—think: banks can now fund corporate buyouts, lighter rules for MSMEs and home loans, plus new co-op bank licenses after nearly 20 years.
The goal? Make it simpler for businesses (and people) to get credit while keeping banks strong and steady.