RBI MPC Key Takeaways 2026: Repo rate hiked to 5.50%, FY27 GDP growth forecast raised to 7.1%
RBI Monetary Policy 2026 Takeaways: The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, the first increase since February 2023. The GDP growth forecast for FY27 was raised from 6.7% to 7.1%, highlighting resilient economic activity. Meanwhile, CPI inflation projection was revised up to 5.2% due to rising food and fuel prices. The Monetary Policy Committee shifted its…
The Reserve Bank of India's Monetary Policy Committee (MPC) announced key decisions during its meeting on Wednesday, February 17, 2026. The policy repo rate was increased by 25 basis points to 5.50%, marking the first rate hike since February 2023. This decision was unanimous, with the MPC's Standing Deposit Facility rate now at 5.25% and the Marginal Standing Facility rate at 5.75%.
The MPC also raised its forecast for India's GDP growth in fiscal year 2027 (FY27) to 7.1% from 6.7%, and increased its inflation projection for FY27 to 5.2% from 5.1%. The committee shifted its policy stance to "calibrated tightening," signifying a sharper focus on containing inflationary pressures. However, the MPC clarified that rate cuts were not an option in the near term and would only occur if actual growth and inflation developments warranted it.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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