RBI MPC Holds Repo Rate, Lowers GDP Growth Projections Amid West Asia War, Supply Chain Pressure
The Reserve Bank of India's Monetary Policy Committee on Friday kept the repo rate unchanged at 5.25%, while cutting growth projection as Governor Sanjay Malhotra's six-member panel flagged supply-chain disruption and elevated energy prices feeding into lower growth and higher inflation. The MPC lowered its FY27 real GDP projection to 6.6%, from 6.9% set in April. The central bank cut its quarterly path across the board, projecting Q1 growth at 6.6% (from 6.8%), Q2 at 6.3% (from 6.7%) and Q3 at 6.5% (from 7%), while pegging Q4 at 6.8%. Its FY26 growth estimate was retained at 7.6%.
