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RBI holds repo rate, USD/INR slips to around 95.10
RBI kept its neutral stance, trimming its FY2026-2027 inflation forecast to 5.0% and raising growth to 6.7%, while the odds of an October hike fell to about 58%.
The Reserve Bank of India kept the repo rate unchanged at 5.25% for a fourth straight meeting and maintained a neutral policy stance, according to Commerzbank analysis cited by FXStreet.
FXStreet reports the RBI viewed the recent June inflation overshoot as largely supply driven, with June CPI rising to 4.4% year over year versus the 4% target, and it marginally cut its FY2026-2027 inflation forecast to 5.0% from 5.1%.
FXStreet said the central bank lifted its FY2026-2027 growth outlook to 6.7% from 6.6%, citing resilient domestic demand and supportive government policies, while interest rate markets reduced expectations for near term tightening.
In foreign exchange, USD/INR slipped about 0.3% to around 95.10, FXStreet reported, supported by lower oil prices and strong capital inflows linked to June measures, which it said have generated more than USD 40 billion via FCNR(B) deposits and overseas borrowing facilities.