RBI Holds Repo Rate Steady as Economic Growth Shows Resilience
The Reserve Bank of India (RBI) maintains its repo rate at 5.5%, projecting a GDP growth of 6.5% for FY26. Inflation expectations have been revised to 3.1%, with the Current Account Deficit remaining sustainable. The standardization of claim settlements for deceased customers in banks is planned.
- Country:
- India
In its bi-monthly monetary policy review, the Reserve Bank of India, under the stewardship of Governor Sanjay Malhotra, has opted to maintain the short-term lending rate, or repo rate, at 5.5%. This decision was unanimously agreed upon by the Monetary Policy Committee (MPC).
The RBI remains optimistic about the country's economic trajectory, retaining a GDP growth projection of 6.5% for the fiscal year 2026. Inflation forecasts have been eased to 3.1%, reflecting positive domestic economic outlooks. The Current Account Deficit is anticipated to stay within manageable limits, ensuring economic stability.
Further developments include an underway effort to streamline the claim settlement procedure for deceased customers' bank accounts and lockers. Additionally, the RBI's Retail-Direct platform is set to introduce Systematic Investment Plans (SIPs) in treasury bills, while the MPC's next meeting is slated for September 29 to October 1, 2025.
(With inputs from agencies.)
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