The Reserve Bank of India’s Monetary Policy Committee kept rates steady and cut inflation forecasts, signaling a prolonged pause amid easing price pressures.
India’s Monetary Policy Committee left the repo rate unchanged at 5.25% in a unanimous decision, maintaining a neutral stance. The move aligned with market expectations but featured a more dovish tone than prior meetings, reflecting comfort with inflation trends.
The MPC lowered its FY27 CPI and core inflation projections while raising GDP growth forecasts. Policymakers cited reduced inflation risks but remained watchful of El Niño and crude oil price volatility. The committee indicated a high bar for future rate hikes unless inflation surprises to the upside.
Analysts interpret the statement as supporting a prolonged pause, with no rate changes expected in FY27 unless material risks emerge.