RBI holds repo at 5.25%, lifts FY27 growth forecast to 6.7%

The RBI retained its neutral stance and 5.25% repo rate, raised its FY27 GDP-growth projection from 6.6% to 6.7%, and trimmed its inflation forecast to 5.0%. The outlook offers a supportive consumer-demand signal for retailers, though oil prices, geopolitics and monsoon risks remain.

— Filed Wed, 5 Aug, 2026, 11:01 IST · Source Mint · Markets · Updated

RBI retained the 5.25% repo rate and neutral stance, raised FY27 GDP growth forecast to 6.7%, and cut CPI inflation forecast to 5%. The outlook remains exposed to monsoon, El Niño, oil-price, geopolitical and global-trade risks.

Why this matters

The decision extends RBI’s recent pattern: it previously held the repo at 5.25% and cut FY27 inflation to 5%, while separately raising FY27 growth to 6.7%. Together, the signals point to stable borrowing costs and a firmer consumption outlook.

Retail-company is accelerating, up 206871% QoQ.