RBI Maintains Key Rate Amid Global Economic Concerns

Original: RBI holds rates, flags downside risks to growth amid global uncertainty

Business Standard•Apr 8, 20261 min

In a Nutshell

The Reserve Bank of India (RBI) has decided to keep the key policy rate unchanged at 5.25% while projecting inflation to rise to 4.6% in FY27 from 2.1% in FY26. The RBI also forecasts a slowdown in GDP growth to 6.9% from 7.6%, citing global uncertainties as a significant concern.

Key Points

01RBI holds the key policy rate at 5.25%
02Inflation is projected to rise to 4.6% in FY27
03GDP growth is expected to slow to 6.9% in FY27
04Global economic uncertainty influences RBI's decisions
05The monetary policy committee maintains a neutral stance

In-Article Ad

Full Summary

The Reserve Bank of India (RBI) has decided to keep the key policy rate unchanged at 5.25%, aligning with market expectations. In its latest announcement, the RBI projected that inflation will rise to 4.6% in the fiscal year 2026-27 (FY27), up from 2.1% in FY26. Additionally, the...

Key Figures

5.25%

Current key policy rate

4.6%

Projected inflation rate for FY27

2.1%

Inflation rate for FY26

6.9%

Projected GDP growth rate for FY27

In-Article Ad

Why It Matters

The RBI's decision to maintain the key rate at 5.25% may stabilize borrowing costs for consumers and businesses, but rising inflation could impact purchasing power.

Who is affected

Consumers, businesses, and investors

What to know

Individuals and businesses should prepare for potential increases in prices while monitoring the RBI's future policy decisions.

FAQ

The current key policy rate set by the RBI is 5.25%.

Inflation is projected to rise to 4.6% and GDP growth is expected to slow to 6.9% in FY27.

✦