India's economy expanded 7.7% in FY26, the fastest pace in two years, but the RBI held its repo rate at 5.25% on June 5 and cut its FY27 growth forecast to 6.6%. A projected inflation peak of 5.9% in Q3 FY27 removes the case for further easing.
RBI Monetary Policy Committee keeps the repo rate steady at 5.25% while rolling out measures to support foreign capital inflows. Source
