Reserve Bank of India (RBI) Governor Sanjay Malhotra has said he preferred to wait for greater clarity on the inflation trajectory before considering any change in the policy rate.
According to the minutes of the Monetary Policy Committee meeting held from 3rd to 5th August, the MPC unanimously decided to keep the repo rate unchanged at 5.25 per cent for the fourth consecutive time and retain the neutral stance.
Governor Malhotra said higher food, fuel and input prices pose risks of broader inflation, but there are limited signs so far of these pressures becoming generalised. He said, any evidence of persistent inflation or unanchored inflation expectations could require policy tightening.
Deputy Governor and MPC member Poonam Gupta also favoured a wait-and-watch approach, citing continuing global and weather-related uncertainties.
The RBI has projected real GDP growth at 6.7 per cent and CPI inflation at 5 per cent for 2026-27. The MPC said geopolitical developments, global energy prices and the monsoon remain key factors to watch.
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