RBI Monetary Policy: Sanjay Malhotra-led MPC raises FY27 growth projections to 6.7% despite Middle East crisis

The RBI's MPC, led by Governor Sanjay Malhotra, kept the repo rate unchanged at 5.25% with a neutral stance, while raising India's FY27 GDP growth projection to 6.7% from 6.6%. Q1 FY27 growth forecast was lifted to 7% from 6.6%, and Q2 to 6.4% from 6.3%, with Q3 held at 6.5% and Q4 retained at 6.8%. The central bank cited uncertainties from the Southwest monsoon, El Niño conditions, geopolitical tensions, and global trade policy as reasons for adopting a wait-and-watch approach, preferring greater clarity on inflation before any policy action.