RBI holds repo rate at 5.25%, cuts inflation forecast

The Reserve Bank of India's Monetary Policy Committee kept the repo rate unchanged at 5.25% and retained its neutral stance, citing inflation risks from food and fuel prices, monsoon uncertainties, and global factors. The RBI lowered its FY27 CPI inflation forecast to 5.0% and raised GDP growth projection to 6.7%. Governor Sanjay Malhotra said headline inflation is expected to remain elevated in the near term.