RBI keeps repo at 5.25% trims FY27 inflation to 5%
The Reserve Bank of India (RBI) is keeping the repo rate at 5.25% for the fourth time in a row.
The central bank also trimmed its inflation forecast for fiscal 2027 to 5%, thanks to easing price pressures, and bumped up its GDP growth outlook slightly to 6.7% as the economy shows solid early momentum this year.
RBI forecasts 7% Q1 GDP
For the first quarter ended June of FY27, the RBI now expects GDP growth at 7%, up from 6.6%, driven by strong city spending and more infrastructure projects.
Inflation for the second quarter was revised down to 4.7%.
RBI Governor Sanjay Malhotra did mention some risks ahead, like unpredictable monsoons and global tensions, but reassured that overall inflation is under control.
Markets took it all in stride, with only small moves in stocks and a stronger rupee.