Industry Welcomes RBI's Stable Repo Rate Amid Global Uncertainty

Business leaders across manufacturing, services and trade welcomed the RBI’s decision to hold the repo rate steady, interpreting it as a sign of policy continuity. The move is expected to sustain the current pace of economic growth while keeping inflation in check.

Bank of Baroda chief economist Dr. Madan Sabnavi emphasized that the RBI’s stance aligns with its revised GDP growth outlook, which was lifted by ten basis points, and a ten‑point reduction in the inflation forecast. He said the combination of higher growth expectations and lower inflation supports maintaining the status quo.

However, Dr. Sabnavi warned that inflationary pressure could rise in the second half of the current fiscal year and the first quarter of FY 2027‑28, leaving open the possibility of a rate hike by the end of 2026 if price pressures intensify.