RBI's rate-setting panel hints at future policy tightening if inflation persists
The Reserve Bank of India's monetary policy committee maintained the repo rate at 5.25% on August 5, despite retail inflation rising to 4.45% in July. RBI Governor Shaktikanta Das indicated potential policy tightening if inflation risks from food and fuel materialize. The central bank forecasts core inflation to average 4.3% in FY27, with expectations of inflation peaking in Q3.