The Reserve Bank of India’s Monetary Policy Committee (MPC) delivered a 25-basis-point rate cut on Friday, bringing the repo rate down to 5.25 percent and signalling an early-policy easing ahead of global peers. The committee voted unanimously for the reduction while retaining its stance at “neutral,” even as inflation softened sharply and growth momentum remained robust. Advertisement

The RBI lowered its average CPI inflation forecast for FY26 to 2.0 percent from 2.6 percent, citing exceptionally benign food prices. At the same time, the central bank revised its FY26 GDP growth estimate upward to 7.3 percent, supported by resilient domestic demand and strong investment activity. Growth for the first two quarters of FY27 is also projected to stay near 6.7–6.8 percent.

What surprised mar

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