Reserve Bank of India (RBI) has decided to keep the benchmark repo rate unchanged at 5.25 percent, with Governor Sanjay Malhotra stating that the country's economic growth continues to remain resilient despite global uncertainties.
Presenting the latest Monetary Policy Statement, Malhotra said India remains the world's fastest-growing major economy, supported by strong domestic demand. He added that the country's economic performance during the April-June quarter of the current financial year has been better than expected.
The RBI Governor noted that sustained consumer demand and overall economic resilience have helped maintain growth momentum, even as the global economy continues to face multiple challenges.
Commenting on the international economic environment, Malhotra said the ongoing conflict in West Asia continues to pose risks to the global economy by disrupting key trade routes and adding to uncertainty in global markets.
On the inflation front, the Reserve Bank revised its consumer price index (CPI) inflation forecast downward for the 2026-27 financial year. The central bank now projects CPI inflation at 5 percent, compared to its earlier estimate of 5.1 percent.
The decision to maintain the repo rate indicates the RBI's continued focus on balancing inflation management with supporting economic growth amid evolving domestic and global conditions.
