The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25% following the Monetary Policy Committee (MPC) meeting chaired by Governor Sanjay Malhotra. This decision means home and car loan EMIs will remain stable for now. While the RBI maintained a neutral stance, it raised the inflation forecast for FY27 to 5.1% from the previous 4.6%. The Governor highlighted global supply chain issues and energy price volatility as challenges, though domestic retail inflation remains within targets. Future economic outlook remains cautious due to El Nino risks and monsoon uncertainties.
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