RBI holds repo rate at 5.25%, lowers FY27 inflation forecast

Deccan Herald reported that the Reserve Bank of India left its policy repo rate untouched at 5.25% at Wednesday's review, alongside a standing deposit facility rate of 5% and a marginal standing facility and Bank Rate both held at 5.50%. Its rate-setting Monetary Policy Committee stuck with a neutral stance, meaning it has not ruled out either a future increase or a future cut. Alongside the rate decision, the central bank trimmed its FY27 retail inflation projection to 5% from an earlier 5.1% and nudged its growth projection up, to 6.7% from 6.6%, pointing to softer crude oil prices as one reason. It also flagged continuing risks from the monsoon, El Nino weather patterns, geopolitical tensions and shifts in global trade policy. Analysts expect the neutral stance to hold through the RBI's October review, though they are split on what comes after that.