Mumbai, August 5: The Reserve Bank of India (RBI) kept its key policy rates unchanged, in line with market expectations, while maintaining its focus on supporting economic growth amid evolving global and domestic macroeconomic conditions. The central bank also revised its GDP growth forecast for FY2026-27 upward from 6.6% to 6.7%, reflecting confidence in the resilience of the Indian economy.
Reacting to the RBI’s monetary policy announcement, Shri Binod Kumar, Managing Director & CEO of Indian Bank, said the decision strikes the right balance between sustaining growth and ensuring macroeconomic stability.
“Key policy rates remain untouched on expected lines. It will help in maintaining growth momentum. The upward revision in the growth forecast from 6.6% to 6.7% for FY2026-27 reflects the resilience displayed by the Indian economy. It is heartening to note RBI’s willingness to act in line with evolving macroeconomic conditions,” said Shri Binod Kumar, MD & CEO, Indian Bank.
The RBI’s decision to leave policy rates unchanged is expected to provide continuity to the financial system, support credit demand, and reinforce investor confidence. The higher growth projection also signals optimism about India’s economic fundamentals, supported by resilient domestic demand, public investment, and improving business activity.
Market participants believe the central bank’s calibrated approach offers stability while retaining flexibility to respond to future inflationary or global economic developments. Banking industry leaders have largely welcomed the policy, viewing it as supportive of sustained economic expansion without compromising on macroeconomic prudence.