MUMBAI: The six-member Financial Coverage Committee (MPC) at its 56th assembly voted unanimously to stay the coverage repo fee unchanged at 5.5% and retained its impartial stance even because it maintained enlargement forecast for FY26 at 6.5% and decreased inflation projection to a few.1% from its previous estimate of three.7%. RBI governor Sanjay Malhotra stated the verdict used to be according to “the present macroeconomic prerequisites, outlook and uncertainties” which known as for “looking ahead to additional transmission of the front-loaded fee reduce to the credit score markets and to the wider economic system”. Following the verdict, the repo fee continues to stay at 5.5% status deposit facility fee at 5.25%, and the marginal status facility fee and financial institution fee at 5.75%. RBI has thus far reduce the repo fee by means of 100 foundation issues in 2025.The RBI famous that the verdict got here towards a backdrop of beneficial monsoon season, resilient home enlargement, and a few easing in geopolitical uncertainties, even if “international industry demanding situations proceed to linger” and “policymakers could have a tricky activity navigating modest enlargement, sticky inflation and increased public debt ranges”. “The headwinds emanating from extended geopolitical tensions, persisting international uncertainties, and volatility in international monetary markets pose dangers to the expansion outlook,” the Financial Coverage Committee’s formal answer stated.On inflation, Malhotra stated the outlook for FY26 used to be “extra benign than anticipated in June,” with the forecast now at 3.1% when compared with the sooner 3.7%, aided by means of “massive beneficial base results… wholesome Kharif sowing… and relaxed buffer shares”. The revised quarterly CPI projections are: Q2 at 2.1%, Q3 at 3.1% and This fall at 4.4%, with Q1 FY27 observed at 4.9%.The forecast for actual GDP enlargement in FY26 has been retained at 6.5%, with quarterly projections unchanged at Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6% and This fall at 6.3%. Malhotra stated enlargement used to be “protecting up and… widely evolving alongside the traces of our evaluate” supported by means of government capex, stable monsoon, and products and services sector resilience. On financial transmission, he famous that the “have an effect on of the 100 foundation issues fee reduce since Feb 2025... continues to be unfolding,” with the weighted moderate lending fee on contemporary rupee loans down 71 bps and deposit charges on contemporary deposits down 87 bps. “Transmission to lending charges has been wide primarily based throughout all sectors,” he added.