RBI keeps rates steady, takes steps to attract foreign capital

The Reserve Bank of India's Monetary Policy Committee maintained the monetary policy rate and stance at 5.25% and neutral respectively. The committee reduced its growth forecast and increased its inflation forecast for the year, recognising the challenges ahead. Measures were announced to attract more foreign capital in the economy. The Indian economy is expected to grow at 6.6% in 2026-27 with an inflation of 5.1%. The growth-inflation balance is disrupted due to the ongoing war in West Asia.