Business25 January 2026
RBI holds repo rate at 5.5%; central bank projects lower inflation and revises FY26 growth forecast
The Reserve Bank of India kept the policy repo rate unchanged at 5.5% while updating its macro outlook, including a lower inflation projection for FY26 and an upward revision to GDP growth expectations, amid external headwinds.
Policy decision
The RBI maintained the repo rate at 5.5%, signalling a continued focus on balancing growth support with inflation management.
Key projections highlighted
- FY26 inflation projection revised down to 2.6% (as reported).
- FY26 GDP growth forecast revised upward to 6.8% (as reported).
- RBI commentary also flagged uncertainty around external demand and trade-related headwinds.
The updated guidance suggests the central bank is seeing disinflationary space, while still watching risks from global conditions.