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RBI Holds Repo Rate At 5.25% For Fourth Review
The RBI’s Monetary Policy Committee on Wednesday unanimously kept the repo rate at 5.25% and retained its neutral stance for a fourth consecutive review. Governor Sanjay Malhotra said inflation may peak at…
The Story in Brief
The RBI’s Monetary Policy Committee on Wednesday unanimously kept the repo rate at 5.25% and retained its neutral stance for a fourth consecutive review. Governor Sanjay Malhotra said inflation may peak at 5.9% in the third quarter of 2026-27 before easing, while full-year CPI inflation is projected at 5%. Real GDP growth is forecast at 6.7% for 2026-27. The RBI cited geopolitical uncertainty, energy prices and supply-chain pressures, while noting healthy manufacturing and private-sector activity. Economists and real estate executives told Times Now the pause could steady borrowing costs and support festive-season housing demand, though rising construction costs and fuel prices remain risks.
The Indian Opinion
Claims that the RBI has either abandoned inflation control or guaranteed a housing revival go beyond the evidence. The bank is still focused on bringing headline inflation towards its 4% medium-term target, while stable EMIs may help buyers but cannot erase high construction costs or weak affordability. The practical test is whether inflation moves down after the projected third-quarter peak without forcing a rate increase. The RBI’s 5.9% Q3 inflation forecast will be the first number to watch.
Sources (5): timesnownews.com, timesnownews.com (2), timesnownews.com (3), timesnownews.com (4), rediff.com
This story was synthesised by AI from the 5 sources linked above.
Updated: this story now draws on 5 sources.
