The Reserve Bank of India's Monetary Policy Committee on Friday kept the repo rate unchanged at 5.25%, while cutting growth projection as Governor Sanjay Malhotra's six-member panel flagged supply-chain disruption and elevated energy prices feeding into lower growth and higher inflation.
The MPC lowered its FY27 real GDP projection to 6.6%, from 6.9% set in April. The central bank cut its quarterly path across the board, projecting Q1 growth at 6.6% (from 6.8%), Q2 at 6.3% (from 6.7%) and Q3 at 6.5% (from 7%), while pegging Q4 at 6.8%. Its FY26 growth estimate was retained at 7.6%.
Governor Sanjay Malhotra said the outlook "remains clouded" by a sub-normal monsoon forecast and the emergence of El Niño, and warned of "incipient stress" in some segments.
The panel saw "considerable risks" in its assessment of both inflation and growth, and said it would remain data dependent while monitoring supply-side pressures.
maintaining the 'neutral' stance as Governor Sanjay Malhotra's six-member panel weighed slowing global growth and a West Asia energy shock.
On inflation, the MPC increased its FY27 CPI projection at 5.1% against 4.6% earlier.
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