RBI MPC Holds Repo Rate at 5.25%, Projects 6.6% GDP Growth and 5.1% CPI Inflation for FY27

RBI MPC Keeps Repo Rate at 5.25%, Hikes GDP Growth to 6.7%, Lowers Inflation to 5%

RBI's MPC kept the repo rate unchanged at 5.25% for the second consecutive meeting, balancing growth and inflation amid global uncertainties. GDP growth forecast for FY27 was marginally hiked to 6.7%, while inflation projection was cut to 5%. This decision impacts loan EMIs, deposit rates, and the overall economic outlook, making it a critical topic for exams covering monetary policy and economic indicators.

RBI Holds Repo Rate at 5.25%, Lowers GDP Growth Forecast to 6.7% for FY27

RBI kept the repo rate unchanged at 5.25% citing a hazy outlook due to monsoon uncertainties, El Niño, geopolitics, and global trade policy. Growth projection for FY27 was lowered to 6.7% while CPI inflation is projected at 5.0% with upside risks from food and fuel supply shocks. Students must memorize these key data points for Prelims and understand the growth-inflation trade-off for Mains.

RBI Holds Repo Rate at 5.25% as CPI Inflation Hits 4.38% in June; Forex Reserves Near $700 Bn

RBI's MPC kept repo rate unchanged at 5.25% for the fourth time, prioritizing growth despite CPI inflation rising to 4.38% in June, above the 4% target. Elevated global crude prices and geopolitical uncertainties are key concerns. The central bank is using tools like dollar-rupee swaps and FCNR(B) deposits to manage liquidity and shore up forex reserves near $700 billion, while the rupee recovers to around ₹95.

RBI Holds Repo Rate at 5.25%, Focuses on Core Inflation Ex Precious Metals

RBI kept repo rate unchanged at 5.25% but signaled a focus on core inflation excluding precious metals (currently 2.5%) as the 'lodestar' for policy. This puzzling communication suggests potential rate hikes later if core inflation converges, even as headline CPI is expected above 4% target. Key for understanding RBI's inflation targeting approach and market expectations.

India's July Retail Inflation Rises to 4.45%, RBI Holds Repo Rate at 5.25%

India's July retail inflation rose to 4.45%, the highest in 19 months, driven by food and transport costs. The RBI's MPC held the repo rate at 5.25% for the fourth consecutive meeting, balancing persistent supply-side inflation against weakening economic momentum. This is critical for exams as it tests your understanding of inflation dynamics, MPC decision-making, and the interplay between global disruptions (Ukraine-Russia) and domestic prices.

India's GDP Growth Stays Above 7% Amid West Asia War: 125 bps Repo Rate Cut, Low Services Inflation Key

The Indian economy has defied expectations of a sharp slowdown despite the West Asia war. GDP growth remained above 7%, inflation stayed low, and current account deficit was contained at 0.3% of GDP. Key factors include 125 bps repo rate cuts, GST cuts, and resilient services exports and low services inflation. However, risks persist from rising food inflation, potential El Niño impact, and vulnerability of services sector.

US Fed Hikes Rates to 3.75–4%; RBI MPC Seen Raising Repo Rate to 5.5% in October

The US Federal Reserve has raised the federal funds rate target range by 25 bps to 3.75–4%, its first hike in three years, with all 12 FOMC members voting in favour. With India's CPI inflation at 4.82% in August and price pressures generalising, the RBI's MPC (Oct 5–7) is expected to hike the repo rate by 25 bps to 5.5%. This is a high-yield monetary policy development for Prelims and Mains.

RBI Holds Repo Rate at 5.25%, Maintains Neutral Stance; GDP Growth Forecast Raised to 6.7%

The RBI MPC unanimously voted to keep the repo rate unchanged at 5.25%, maintaining a neutral stance. While headline inflation is projected to rise to 5.0% for FY2026-27 due to food and fuel pressures, core inflation remains benign. GDP growth forecast has been revised upward to 6.7%.