The RBI has decided to maintain the repo rate at 5.25 percent, adopting a neutral stance on monetary policy. They have revised inflation forecasts for FY27 downward by 40 basis points, bringing it to 4.3 percent. For the fiscal year 2026-27, real GDP growth is expected to be around 6.7 percent, with demand pressures appearing manageable as inflation is mostly supply-driven.
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