Governor Sanjay Malhotra revealed the RBI Monetary Policy Committee (MPC)’s growth expectations for the 2025-26 fiscal year (FY26) on Wednesday. The central bank opted to upgrade its GDP forecast to 6.8 per cent from 6.5 per cent.
Further, the MPC also decided to keep the repo rates unchanged at 5.5 per cent. The three-day discussions began on September 29 and concluded today morning. Notably, ICRA’s Chief Economist Aditi Nayar observed that stronger-than-expected Q1 growth supports the case for holding rates in October. Meanwhile, international headwinds, particularly US tariff actions and global trade volatility, are also part of the MPC’s calculus.
