Stable environment

Base revision may not have immediate implications for MPC

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The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) —as widely expected by market participants — decided on Friday to keep the policy repo rate unchanged in its last meeting this financial year.

There were a number of reasons for the committee to maintain the status quo. The growth outlook, for instance, has improved. According to the first advance estimates of the National Statistics Office, the Indian economy is expected to grow by 7.4 per cent this financial year. The MPC has revised its growth projections upwards for the first and second quarters of 2026-27 to 6.9 per cent and 7 per cent, respectively. Inflation projections for the first two quarters next financial year were also revised to 4 per cent and 4.2 percent, respectively, compared to the previous forecast of 3.9 percent and 4 percent.