The Reserve Bank of India (RBI) has kept the benchmark repo rate unchanged at 5.25%, choosing to maintain stability as it monitors inflation trends and global economic uncertainty. The decision was taken unanimously by the Monetary Policy Committee during its latest policy review.
Alongside the rate decision, the RBI projected that India’s economic growth could slow to 6.9% in FY27, lower than the estimated 7.6% growth in FY26. The central bank indicated that external risks, volatile commodity prices, and geopolitical tensions may weigh on growth momentum in the coming year.
The RBI also expects consumer inflation to average 4.6% in FY27, remaining within its target band, but warned that rising crude oil prices and supply disruptions could create upward pressure on prices.
By keeping rates steady, the RBI aims to strike a balance between supporting growth and controlling inflation. The move means borrowing costs for home loans, auto loans, and business credit are likely to remain stable in the near term.