# RBI holds rates at 5.25%, lifts FY27 growth forecast to 6.7%

2026-08-07T06:21:27+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Reserve Bank of India kept the repo rate unchanged at 5.25% for the fourth consecutive meeting, with the Monetary Policy Committee voting unanimously to retain a 'neutral' stance. Governor Sanjay Malhotra raised the FY27 GDP growth forecast to 6.7% from 6.6% and lowered the inflation projection to 5% from 5.1%, citing resilient domestic demand but warning of risks from West Asia tensions, El Nino, and trade policy. A JM Financial report expects the RBI to remain on hold through 2026, relying on liquidity management instead of rate changes. The BSE Sensex gained 152 points in volatile trading, while the rupee recovered to around ₹95.

## Coverage

- bfsi.economictimes.indiatimes.com <https://bfsi.economictimes.indiatimes.com/news/editors-view/is-rbis-low-interest-rate-regime-really-powering-indias-growth/133019368>
- bfsi.economictimes.indiatimes.com <https://bfsi.economictimes.indiatimes.com/news/banking/rbi-likely-to-stay-on-prolonged-pause-rate-cuts-unlikely-in-2026/133019135>
- thehindu.com <https://www.thehindu.com/opinion/editorial/prudent-approach-on-the-rbis-interest-rate-setting-committee-meet/article71318661.ece>
- rediff.com <https://www.rediff.com/business/report/volatile-trading-session-on-rbis-big-day-sensex-holds-steady-with-152-point-gain/20260805.htm>
- rediff.com <https://www.rediff.com/business/report/rbi-keeps-interest-rates-unchanged-for-3rd-time-in-a-row/20260805.htm>

Tags: economic growth, inflation, interest rates, private investment, RBI
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