Malhotra: Repo Held, Tariff Risks Loom | RBI Cuts FY26 Inflation Forecast

The RBI’s Monetary Policy Committee (MPC) has unanimously held the policy repo rate steady at 5.5%, after delivering 100 bps of rate cuts since February 2025. RBI Governor Sanjay Malhotra said that while growth is robust, uncertainties—especially from US tariff threats—warrant a wait-and-watch approach. The central bank lowered its FY26 inflation forecast to 3.1%, but warned that price pressures could build again in 2026. Growth projection remains unchanged at 6.5% for FY26. As transmission of past cuts continues, RBI signals caution in a volatile global environment. Watch the video for the full statement.