RBI MPC Member Sees Negligible Chance of Near-Term Repo Rate Hike Amid Inflation Concerns

RBI Monetary Policy Committee member Saugata Bhattacharya stated that despite inflationary pressures from geopolitical tensions, weather risks, and rising commodity prices, the likelihood of a near-term repo rate hike is negligible. The RBI unanimously kept the repo rate at 5.25%, maintaining a neutral stance with rates expected to stay low. Inflation is forecasted to rise toward the 4% target in H1 FY27 due to base effects and metals prices, while credit growth, especially to large corporates, has improved steadily.