RBI keeps repo rate at 5.25%, inflation seen above target

The Reserve Bank of India's Monetary Policy Committee held the repo rate at 5.25% for the fourth straight review and retained its neutral stance, Livemint reports. The RBI raised its FY27 GDP growth forecast to 6.7% from 6.6% and lowered its CPI inflation estimate to 5.0% from 5.1%.

India's CPI inflation inched up to 4.45% in July 2026 from 4.38% in June, remaining above the RBI's 4% target for a second consecutive month, according to data from the statistics ministry. Food inflation rose to 5.5% from 5.3%. Economists expect inflation to climb further, keeping the door open for a rate hike at upcoming policy reviews.

Separately, Natarajan Chandrasekaran announced he will step down as Tata Sons chairman when his term ends on 20 February 2027, following a standoff with Tata Trusts chairman Noel Tata over strategic direction. Youth unemployment aged 15-29 rose to 15.9% in Q1 FY27 from 14.6% a year ago, with female unemployment climbing to 19.6%.