Steady Course: RBI Governor Malhotra Signals Prolonged Low Rates

Malhotra emphasized that the RBI’s priority is to sustain growth momentum while keeping inflation in check. With the repo rate currently at 5.25% after four cuts in 2025, the central bank has raised its GDP forecast for FY26 to 7.3% from 6.8%. Analysts view the stance as a signal of policy stability, balancing external trade pressures with domestic resilience.  

Notable updates  
• RBI Governor Sanjay Malhotra signals rates to stay low for a “long period”  
• Repo rate stands at 5.25% after four cuts in 2025  
• Inflation outlook remains benign, giving RBI policy headroom  
• US trade deal impact estimated at ~0.5 percentage points on GDP growth  
• RBI raises FY26 GDP forecast to 7.3% from 6.8%  

Major takeaway  
The RBI’s stance reflects confidence in India’s resilience, balancing external trade pressures with domestic growth priorities, while signaling stability in monetary policy for the foreseeable future.  

Sources: Financial Times, Times of India, LiveMint, Hindustan Times, India Today