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Big Relief for Borrowers? RBI Holds Repo Rate at 5.25%, Raises GDP Growth Forecast
['Sreeja Chowdhury', 'Post Published']
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RBI Holds Repo Rate at 5.25%, Raises GDP Growth ForecastThe RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25% and retained its neutral stance.
The central bank raised its FY27 GDP growth forecast to 6.7% while warning of inflation risks.
As per RBI, inflation will reach its peak in the third quarter before slowly falling.
The uncertainties about the southwest monsoon and El Niño are among other risk factors that can affect inflation and economic growth.
In this context, the central bank revised upwards its estimate of the GDP growth rate for the current fiscal year from 6.6% to 6.7%.