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RBI keeps FY26 growth forecast unchanged

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday kept its FY2025–26 GDP growth forecast unchanged at 6.5%, holding to its earlier stance despite fresh uncertainty stemming from US President Donald Trump’s sweeping import tariffs. For FY2026–27, the central bank projects growth at 6.6%.Quarterly GDP growth for FY26 is projected at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4. “The risks are evenly balanced,” RBI Governor Sanjay Malhotra said.The MPC lowered its inflation forecast for FY26 to 3.1%, from 3.7% in June, citing softening food prices and improving supply conditions. However, it expects inflation to rise to 4.9% in FY27–above its 4% target–due to a likely uptick in food prices and external shocks.The central bank left the repo rate unc

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