RBI holds fire as war & taxes cloud outlook
The Reserve Bank of India (RBI) held the benchmark repo rate steady at 5.25% for the fourth consecutive meeting, balancing rising inflation against resilient domestic growth. RBI Governor Sanjay Malhotra noted that while headline inflation has surpassed the central bank's 4% target, it is primarily driven by higher fuel prices, with underlying price pressures remaining contained. The RBI projected a 6.7% real GDP growth for FY27, indicating that inflation is expected to peak in Q3:2026-27 before moderating.