The Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously raised the policy repo rate by 25 basis points to 5.50 per cent and changed its policy stance to calibrated tightening.
The Standing Deposit Facility (SDF) rate now stands at 5.25 per cent, while the Marginal Standing Facility (MSF) rate and Bank Rate have been adjusted to 5.75 per cent.
The RBI said inflation risks have increased amid geopolitical tensions, elevated global crude oil prices and broader price pressures. Headline CPI inflation is expected to average nearly 5.8 per cent over the next three quarters, while core inflation is projected at 4.4 per cent for FY27.
The central bank said rate cuts are off the table in the near term, with future policy action dependent on evolving growth and inflation conditions.
Despite global headwinds, the RBI maintained a positive outlook for the Indian economy, citing resilient private consumption, strong investment activity and broad-based services growth. Real GDP growth for FY2026-27 has been projected at 7.1 per cent, an upward revision of 40 basis points. Growth is projected at 7.2 per cent in Q2, 6.9 per cent in Q3 and 6.8 per cent in Q4.
The RBI projected CPI inflation at 5.2 per cent for FY2026-27, with inflation expected to rise to 6.0 per cent in Q3 and 5.7 per cent in Q4.
The RBI also announced interoperability among NBFC account aggregators and measures to include deposit-account information in consolidated account statements. It will also constitute a Technical Consultative Committee for Financial Markets to facilitate structured engagement with market participants and stakeholders.
