RBI’s Monetary Policy Committee kept the repo rate unchanged at 5.25% at its scheduled policy review meeting today, while retaining its ‘neutral’ policy stance
Download ReportQuantEco Research | Apr-26 RBI Policy - Maintaining calm amidst volatility
In line with expectations, the RBI’s Monetary Policy Committee kept the repo rate unchanged at 5.25% at its scheduled policy review meeting today, while retaining its ‘neutral’ policy stance. The central bank introduced its FY27 forecast for GDP growth and CPI inflation at 6.9% (down from 7.6% in FY26) and 4.6% (up from 2.1% in FY26), respectively. Amidst the unpredictability of current geopolitical risks, the central bank has assigned a downside risk to its growth forecast, while attaching an upside risk to its inflation forecast. We stick to our view of a prolonged pause, with repo rate being maintained at 5.25% through FY27. The central bank would continue to focus on preserving financial stability by curbing adverse global spillover risks via the FX channel.