The Reserve Bank of India (RBI) on Wednesday decided to keep the repo rate unchanged at 5.5 per cent, with the monetary policy committee (MPC) maintaining a “neutral” policy stance.

A neutral stance implies that the central bank neither seeks to stimulate the economy nor tighten liquidity, balancing efforts to control inflation without impeding growth.

RBI Governor Sanjay Malhotra said the inflation outlook has become more benign due to a sharp decline in food prices and recent GST rate cuts. The RBI has revised its average inflation projection for 2025-26 to 2.6 per cent from the 3.1 per cent projected in August.

On growth, the MPC has raised its GDP forecast to 6.8 per cent from 6.5 per cent earlier, citing robust domestic demand, a good monsoon, the impact of earlier monetary easing,

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