RBI Holds Repo Rate at 5.25% for Second Straight Time Amid West Asia Tensions
The Reserve Bank of India kept the repo rate unchanged at 5.25% for the second consecutive time, prioritizing stability amid global uncertainty triggered by the West Asia crisis.
 
The RBI revised its real GDP growth forecast for FY26 to 6.6%, down from the earlier projection of 6.9%.
 
RBI Governor Sanjay Malhotra informed that the CPI inflation is projected to be at 5.1% for this year, about 50 basis points more than earlier projected.
 
International crude oil prices, the Indian basket, have averaged around 110 US dollars per barrel during the last two months and indications are that the average oil prices for this year would be substantially higher than what were assumed during the last policy, RBI Governor added.
 
Sanjay Malhotra further stated that the CPI inflation remains below the target despite global shock as the pass-through to domestic prices has been limited.

By Nirvay

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