RBI holds repo rate at 5.25%, projects 6.9% GDP growth for FY2026-27

The Reserve Bank of India's (RBI) Monetary Policy Committee kept the repo rate unchanged at 5.25% and retained a neutral stance. The central bank projected 6.9% GDP growth for FY2026-27.

अजय राज 23 May 2026, 02:09 AM • 1 min read • 14 views

RBI holds repo rate at 5.25%, projects 6.9% GDP growth for FY2026-27 — The RBI keeps interest rates steady (representative image).

Mumbai, May. The Reserve Bank of India (RBI) decided to keep its key interest rate (repo rate) unchanged at 5.25% in its monetary policy review. The Monetary Policy Committee (MPC) unanimously chose to retain a neutral stance.

Growth and inflation projections

The RBI projected real GDP growth of 6.9% for FY2026-27. The estimate is 6.8% for the first quarter and 6.7% for the second. Inflation is expected to average 4.6%, close to the central bank's medium-term target.

Why a neutral stance

A neutral stance means the central bank wants to retain flexibility to raise or cut rates as conditions evolve. Food prices, the movement of crude oil, and global geopolitical developments remain key risks.

What it means for the economy

Experts say steady interest rates are a relief for borrowers and industry, as there will be no immediate pressure on EMIs. A rating agency expects the RBI may hold the repo rate at 5.25% through all of FY27. Resilient domestic demand and investment activity are seen as the main pillars of growth.

Source: RBI monetary policy

#Economy #Rbi #Gdp #Repo Rate #Monetary Policy