RBI Governor On Policy Outlook | Inflation Revised Down, Growth Outlook Clouded

The Reserve Bank of India, led by Governor Sanjay Malhotra, has kept the policy repo rate unchanged at 5.5% with a unanimous vote by the Monetary Policy Committee. The STF rate stays at 5.25%, while the MSF rate and bank rate remain at 5.75%. Importantly, headline inflation has been revised downwards from earlier projections, now estimated at 2.6%, reflecting a sharp drop from June and August forecasts. Core inflation is also expected to stay contained, even as global uncertainties and tariff-related developments may weigh on growth in the second half of the year. With a neutral stance maintained, the RBI signalled that there is policy space to support growth while keeping inflation aligned with its target.