RBI holds repo rate at 5.25%, raises GDP forecast to 6.7%

The Reserve Bank of India's Monetary Policy Committee unanimously kept the repo rate unchanged at 5.25% for a fourth straight pause, retaining a neutral stance. It raised the FY27 GDP growth forecast to 6.7% from 6.6% and lowered the CPI inflation projection to 5% from 5.1%. Governor Sanjay Malhotra cited food and fuel prices for elevated inflation, while noting core inflation remains benign and liquidity will be ensured.