RBI sticks to 6.5% growth forecast, keeps repo rate steady
The Reserve Bank of India isn't changing its tune: it still expects the economy to grow by 6.5% in 2025-26.
Growth is set to peak at 6.7% in Q2 before easing a bit, and the repo rate stays steady at 5.5%.
Global uncertainty lingers.
Risks and benefits in the economy
On the plus side: good monsoon predictions, cooling inflation (now expected at just 3.1% for FY26), more factories running near full capacity, and steady government investment are all helping out.
But there are risks—like new tariffs, shaky global demand, and ongoing geopolitical tensions—that could shake things up for exports and markets.
Experts back RBI's decision
Most experts say the RBI is being careful—no big moves unless growth really slows down or inflation spikes again.
Kotak Mahindra AMC called this a "cautious" stance given the trade challenges ahead, while Elara Capital thinks pausing rate changes makes sense with food prices bouncing around so much.
The PHD Chamber of Commerce says it's a supportive move for now—even if the world outside feels unpredictable.