The RBI has upped the FY26 real GDP growth projection by 50 basis points (bps) to 7.30 per cent and cut the CPI inflation projection by 60 basis points to 2 per cent.

These aforementioned revisions came even as Governor Sanjay Malhotra announced the rate-setting panel’s unanimous decision to cut the repo rate by 25 bps from 5.50 per cent to 5.25 per cent .

Malhotra said: “The MPC concluded that there has been a significant moderation in inflation. Moreover, the prevailing global uncertainties and tariff related developments are likely to decelerate growth in H2 2025-26 and beyond.”

GDP growth projection up

The Governor noted that looking ahead, domestic factors such as healthy agricultural prospects, continued impact of GST rationalisation, benign inflation, healthy balance s

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