RBI keeps door open for rate cut

Maintains repo rate at 5.5% Raises FY26 growth projection to 6.8% Lowers full-yr inflation forecast to 2.6%

- MANOJIT SAHA

The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously decided to keep the policy repo rate unchanged at 5.5 per cent for the second consecutive meeting, while maintaining a neutral stance, though two external members expressed a preference for an accommodative approach.

The MPC has discontinued the practice of voting on stance as it is not mandated by the law.

The central bank has lowered its inflation projection for FY26 to 2.6 per cent from 3.1 percent, and for the first quarter of the next financial year to 4.5 percent from 4.9 per cent.

The economic growth projection for the full year has been revised upward to 6.8 per cent from its August forecast of 6.5 per cent, reflecting stronger-than-expected Q1 GDP growth of 7.8 per cent. The forecast for the second half, however, has been trimmed by 15 basis points to 6.3 per cent.