RBI keeps repo rate steady at 5.25%, reduces GDP growth projection for FY27

Key points

• The Reserve Bank of India (RBI) on Friday left the repo rate unchanged at 5.25%, choosing to wait for more clarity on the impact of rising crude oil prices, supply chain disruptions and geopolitical tensions on inflation and economic growth.
• The decision was widely expected by economists.
• All six members of the MPC voted unanimously to maintain the policy repo rate at 5.25%.
• The central bank also retained its "neutral" policy stance, signalling that future decisions will depend on incoming economic data and evolving global developments.
• Announcing the decision, RBI Governor Sanjay Malhotra said the global environment had become more challenging since the central bank's previous policy review in April.