RBI Holds Repo Rate, Lifts Growth Outlook as Inflation Stays Benign
The Monetary Policy Committee kept the policy rate unchanged for a fourth straight meeting and nudged up its GDP forecast, citing resilient demand, easing food prices and a stable rupee.
Mumbai, September 10, 2026 — The Reserve Bank of India held its benchmark repo rate steady for a fourth consecutive review and raised its growth projection for the year, striking an optimistic tone on an economy it described as running "close to trend with inflation firmly anchored."
The Decision
The Monetary Policy Committee voted to keep the policy stance neutral, signalling comfort with the current level of rates. The Governor said the bar for further easing would be a durable undershoot of the inflation target, while any renewed price pressure would be watched closely.
Reading the Forecasts
- Growth: The GDP estimate was revised modestly higher on strong investment and services.
- Inflation: Headline prices are seen staying inside the tolerance band, aided by a good monsoon.
- Rupee: Reserves near record highs give the central bank room to smooth volatility.
Market Reaction
Bond yields eased slightly and equities held gains after the announcement, with economists reading the commentary as a signal that rates will stay on hold well into next year barring a shock.
