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RBI Holds Rates, Lowers Inflation Forecast Amid Growth Surge

10/2/2025

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Summary

Story summary

The Reserve Bank of India kept the repo rate at 5.5% amid tariff uncertainties and domestic tax cuts, and stressed policy flexibility to respond to evolving conditions.
It lowered the FY 2025-2026 inflation forecast to 2.6% from 3.1%, citing lower food prices and GST reforms.
Gross domestic product (GDP) growth projections rose from 6.5% to 6.8% on stronger first-half performance.

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Story summary

The Reserve Bank of India kept the repo rate at 5.5% amid tariff uncertainties and domestic tax cuts, and stressed policy flexibility to respond to evolving conditions.
It lowered the FY 2025-2026 inflation forecast to 2.6% from 3.1%, citing lower food prices and GST reforms.
Gross domestic product (GDP) growth projections rose from 6.5% to 6.8% on stronger first-half performance.