Hyderabad: The Monetary Policy Committee (MPC) of the Reserve Bank of India unanimously decided to keep the RBI repo rate unchanged at 5.25 per cent.
The decision came at the second bi-monthly monetary policy meeting for FY27 held from June 3 to June 5.
The central bank also retained the Standing Deposit Facility rate at 5 per cent.
Meanwhile, the Marginal Standing Facility rate and the bank rate remained at 5.5 per cent.
RBI repo rate unchanged as growth outlook weakens
RBI Governor Sanjay Malhotra said the MPC reviewed evolving macroeconomic and financial conditions before taking the decision.
He said the economy remained resilient despite emerging stress in certain sectors.
However, the central bank lowered its FY27 real GDP growth forecast to 6.6 per cent from 6.9 per cent.
According to the RBI, global uncertainty, geopolitical tensions, supply chain disruptions and rising energy prices influenced the revised projection.
Malhotra said services exports were expected to remain resilient despite global challenges.
He also noted that government measures had helped the economy withstand external shocks.
On inflation, the governor said consumer price inflation remained low at present.
However, he cautioned that inflation could move closer to the upper tolerance band during the third quarter.
He also flagged risks from a possible sub-normal monsoon and the emergence of El Nino conditions.
Meanwhile, private consumption continued to support economic growth through steady discretionary spending.
The governor added that merchandise exports had continued to grow despite ongoing geopolitical tensions.
At the same time, he said rising cost pressures were becoming increasingly visible across sectors.