Timely inaction: On RBI’s decision to hold repo rate
The Hindu·1h ago·Neutral
What Happened
India's RBI Monetary Policy Committee decided to hold the repo rate steady, avoiding rate changes that could worsen inflation and growth pressures. The decision reflects supply-side inflation from West Asia disruptions rather than demand-driven inflation. RBI forecasts 6.9% GDP growth for 2026-27, though uncertainty persists from geopolitical tensions and fuel constraints affecting industrial growth.
Key Entities
RBI Monetary Policy CommitteeSanjay Malhotrarepo rateWest Asia warWorld BankIndia GDP growth