-GDP Growth Forecast for FY 2026–27 Revised to 6.6 Per Cent

New Delhi, June 5 (HS): The Reserve Bank of India (RBI) has left the repo rate unchanged at 5.25 per cent during the second monetary policy review meeting of the current financial year 2026–27. The decision means that home and car loans are unlikely to become more expensive, and borrowers will not face an increase in their EMIs.

RBI Governor Sanjay Malhotra announced the decision on Friday following the conclusion of the three-day bi-monthly review meeting of the Monetary Policy Committee (MPC). Malhotra said that the MPC had decided to maintain its neutral policy stance while keeping the benchmark repo rate unchanged at 5.25 per cent in the second monetary policy review of the current fiscal year.

He also stated that the central bank has revised its real Gross Domestic Product (GDP) growth forecast for FY 2026–27 to 6.6 per cent.

Malhotra said that despite prevailing global uncertainties, the RBI remains confident that India will successfully navigate the challenges and emerge stronger. “The real GDP growth forecast for this year is now 6.6 per cent. Earlier, we had projected growth at 6.9 per cent,” he said.

According to the RBI’s latest projections, GDP growth is expected to be 6.6 per cent in the first quarter of the current financial year, 6.3 per cent in the second quarter, 6.5 per cent in the third quarter, and 6.8 per cent in the fourth quarter.

The RBI's Monetary Policy Committee comprises six members, including three representatives from the central bank and three members appointed by the Central Government. The committee meets every two months to review monetary policy and key economic indicators.

A total of six MPC meetings are scheduled during FY 2026–27. The first meeting of the financial year was held from April 6 to April 8, 2026.

What Is the Repo Rate?

The repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks. When the repo rate is reduced, banks can borrow funds from the RBI at a lower cost. This often enables banks to pass on the benefit to customers by reducing lending rates on various loans.

It is noteworthy that during the MPC review meeting held in April, the RBI had unanimously decided to maintain a neutral policy stance and keep the repo rate unchanged at 5.25 per cent. The central bank last altered the policy rate in December 2025, when it reduced the repo rate by 25 basis points (0.25 percentage points) to 5.25 per cent.

Hindusthan Samachar / Jun Sarkar