Jun 06, 2025 10:47 AM IST
The RBI has revised its inflation forecast for FY26 to 3.7%, down from the earlier estimate of 4%.
The Reserve Bank of India (RBI) has lowered its forecast for inflation for the financial year 2025–26 (FY26), predicting it will now be 3.7% instead of the earlier estimate of 4%, RBI Governor Sanjay Malhotra said on Friday.
RBI’s Monetary Policy Committee MPC said that inflation has come down and is likely to ease further in the financial year 2025–26, mainly due to better food supply. This is expected to bring more relief to Indian households.
In its key decision of the day, the MPC cut the benchmark repo rate by 50 basis points, bringing it down to 5.5%. This marks the lowest repo rate in three years.
Malhotra said, “While food inflation remains soft, core inflation is also expected to cool further going forward.”
“The Indian economy presents picture of strength, stability and opportunity,” he said. India is growing at a very fast pace and “aspire to grow at a higher rate,” the governor added.
The Reserve Bank of India also changed its monetary policy stance from “accommodative” to “neutral”, meaning it will now take a more balanced approach.
The governor said that future decisions will be based on new economic data.
