RBI holds repo at 5.50%; raises FY26 GDP outlook to 6.8% in October report

RBI paused at 5.50% and nudged FY26 growth to 6.8%, noting softer inflation and stable demand; minutes signaled scope for cuts if disinflation persists into December.

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RBI holds repo at 5.50%; raises FY26 GDP outlook to 6.8% in October report

The Reserve Bank of India kept the policy repo rate unchanged at 5.50% with a neutral stance, citing easing inflation and firm domestic demand. The October Monetary Policy Report lifted FY26 GDP growth to 6.8% and cut CPI projections, pointing to room for future easing if disinflation holds. Minutes showed some members open to a more accommodative stance ahead of December. The RBI highlighted steady credit growth and resilient liquidity as buffers against external risks.
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  • RBI