Overview

• The Monetary Policy Committee voted unanimously to keep the repo rate unchanged at 5.5 percent and retain a neutral stance.
• The RBI lowered its FY26 CPI inflation forecast to 3.1 percent from 3.7 percent on expectations of continued disinflation in food prices and a favourable monsoon.
• The central bank maintained its real GDP growth projection at 6.5 percent for 2025-26, citing resilient domestic demand and sustained government capital expenditure.
• Officials highlighted that the transmission of cumulative 100 basis points of rate cuts since February is still unfolding in credit markets.
• The decision comes as new 25 percent US tariffs on Indian goods introduce external headwinds that the RBI plans to monitor before adjusting policy further.