MUMBAI: The six-member Financial Coverage Committee (MPC) at its 56th assembly voted unanimously to maintain the coverage repo fee unchanged at 5.5% and retained its impartial stance even because it maintained development forecast for FY26 at 6.5% and lowered inflation projection to three.1% from its earlier estimate of three.7%. RBI governor Sanjay Malhotra mentioned the choice was based mostly on “the present macroeconomic circumstances, outlook and uncertainties” which referred to as for “ready for additional transmission of the front-loaded fee reduce to the credit score markets and to the broader economic system”. Following the choice, the repo fee continues to stay at 5.5% standing deposit facility fee at 5.25%, and the marginal standing facility fee and financial institution fee at 5.75%. RBI has to date reduce the repo fee by 100 foundation factors in 2025.The RBI famous that the choice got here towards a backdrop of beneficial monsoon season, resilient home development, and a few easing in geopolitical uncertainties, though “international commerce challenges proceed to linger” and “policymakers may have a tricky process navigating modest development, sticky inflation and elevated 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 decision mentioned.On inflation, Malhotra mentioned the outlook for FY26 was “extra benign than anticipated in June,” with the forecast now at 3.1% in contrast with the sooner 3.7%, aided by “giant beneficial base results… wholesome Kharif sowing… and comfy 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 seen at 4.9%.The forecast for actual GDP development 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 mentioned development was “holding up and… broadly evolving alongside the strains of our evaluation” supported by govt capex, regular monsoon, and companies sector resilience. On financial transmission, he famous that the “influence of the 100 foundation factors fee reduce since Feb 2025... continues to be unfolding,” with the weighted common lending fee on recent rupee loans down 71 bps and deposit charges on recent deposits down 87 bps. “Transmission to lending charges has been broad based mostly throughout all sectors,” he added.