Stability Amid Volatility: India's Macroeconomic Outlook
The RBI maintains its repo rate at 5.25% as India's macroeconomic fundamentals stay robust amidst financial market volatility, global trade tensions, and diverse inflation outcomes. Governor Sanjay Malhotra and MPC members express optimism due to positive growth projections and recent trade deals boosting the economic outlook.
- Country:
- India
India's macroeconomic fundamentals remain strong despite the ongoing volatility in global financial markets, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra. During the Monetary Policy Committee (MPC) meeting held earlier this month, all members, including the Governor, voted to maintain the policy repo rate at 5.25%.
Governor Malhotra highlighted that in the context of geopolitical tensions and trade disruptions, India's growth forecast is promising, with technological investments and supportive fiscal policies playing a significant role. The global economic outlook for 2026 shows a slight improvement, although inflation paths may vary internationally.
All MPC members, including external ones, agreed that the current policy stance is suitable. Recent developments, such as the EU-India FTA and US-India trade deal, have boosted economic sentiment. The next MPC meeting is scheduled for April 6-8, 2026.
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