With growth concerns, RBI won’t rush to reverse rate cycle

What Happened

The RBI's Monetary Policy Committee maintained interest rates unchanged and kept its stance neutral. The central bank lowered GDP growth projection to 6.9 percent for FY27 from 7.6 percent for FY26, citing West Asia crisis uncertainties. Inflation forecast for FY27 increased to 4.6 percent. Higher global crude oil prices and supply concerns pose risks. The RBI adopted a wait-and-watch approach, unlikely to reverse the rate cycle soon given growth headwinds.

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