Reserve Bank of India (RBI) maintains repo rate at 5.25% and retains neutral stance

Key facts

• The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25 per cent and retain its neutral policy stance.
• The RBI revised its real Gross Domestic Product (GDP) growth forecast for FY27 to 6.6 per cent from the earlier projection of 6.9 per cent.
• For FY27, the RBI projected GDP growth at 6.6 per cent in the first quarter, 6.3 per cent in the second quarter, 6.5 per cent in the third quarter, and 6.8 per cent in the fourth quarter.
• The MPC projected Consumer Price Index (CPI) inflation for FY27 at 5.1 per cent, driven by rising prices of commercial liquefied petroleum gas (LPG), base metals, plastics, rubber, and other industrial inputs.
• Quarter-wise CPI inflation for FY27 is projected at 4.2 per cent in the first quarter, 5.1 per cent in the second quarter, 5.9 per cent in the third quarter, and 5.4 per cent in the fourth quarter.