By Admin 
RBI Repo Rate: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has kept the repo rate at 5.25% without making any changes. MPC’s stance remains neutral. All the members of the committee were not in favor of change in interest rates. RBI Governor Sanjay Malhotra said that despite global uncertainties, the performance of the Indian economy remains good and the pace of growth is expected to continue further.
Growth and inflation forecast
FY26 GDP growth estimate raised to 7.4% from 7.3%
FY26 retail inflation (CPI) estimate raised to 2.1% from 2.0%
Q1 FY27 inflation rises from 3.9% to 4.0%
Q2 FY27 inflation rises from 4.0% to 4.2%
RBI said that due to the new GDP and inflation data series, the GDP estimate for FY27 has been postponed for the time being. Growth and inflation estimates for FY27 will now be released in the bi-monthly monetary policy review in April.
Rupee strengthened
Rupee strengthened by 11 paise to 90.23 per dollar in early trade due to positive investor sentiments ahead of RBI policy.
the way forward
The RBI Governor said that the inflation and growth outlook in the near future remains balanced and positive. At the same time, possible trade deals are expected to boost exports and investment. Overall, RBI has indicated to maintain a balance between economic stability and growth by keeping interest rates stable.
It is noteworthy that RBI has taken this decision at a time when the long pending trade deal between India and America has finally been agreed upon. Along with this, with the aim of boosting the economy and promoting exports, India has also recently signed a Free Trade Agreement (FTA) with Britain and the European Union. India has set a target of becoming a developed nation by 2047, for which a sustained growth rate of around 8 percent is considered necessary.
However, on the other hand, the recent weakness in the rupee has definitely increased the RBI’s concerns, because a weak currency poses a risk of making imports costlier and increasing pressure on inflation.
Also read: EMI will remain the same as it was, RBI did not change the repo rate; Kept intact at 5.25 percent