India Holds Key Interest Rate; Lowers Inflation Outlook

(RTTNews) - India's central bank retained its key interest rates on Wednesday after cutting by 100 basis points since February and downgraded its inflation outlook for the current fiscal year.

The Monetary Policy Committee of the Reserve Bank of India, governed by Governor Sanjay Malhotra, unanimously decided to hold the policy repo rate at 5.50 percent.

The bank had reduced the rate by 50 basis points in June and 25 basis points each in February and April.

"The MPC further resolved to maintain a close vigil on the incoming data and the evolving domestic growth-inflation dynamics to chart out the appropriate monetary policy path," the bank said in a statement.

All members decided to continue with the neutral stance.

The governor said inflation outlook for 2025-26 has become more benign than expected in June. The bank downgraded its inflation forecast for the current financial year to 3.1 percent from 3.7 percent projected in June.

At the same time, economic growth for 2025-26 was projected at 6.5 percent, unchanged from the previous outlook.