RBI Holds Steady: Rate Pause, Growth Upgrade, and Geopolitical Jitters

The RBI kept the repo rate unchanged at 5.25% for the fourth straight meeting on August 5, while simultaneously raising its FY27 GDP growth forecast to 6.7% (from 6.6%) and trimming inflation expectations to 5.0% (from 5.1%). Governor Sanjay Malhotra's MPC voted unanimously for a pause, citing 'greater clarity' needed on the inflation trajectory.

Behind the Data

The numbers tell a story of cautious optimism mixed with geopolitical anxiety. While the growth...