Highlights Of Reserve Bank's Monetary Policy

Mumbai – Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra on Wednesday:

* Key interest rate (repo) unchanged at 5.5 pc;

* GDP growth projection for FY26 raised to 6.8 pc from 6.5 pc;

* Inflation estimate lowered to 2.6 pc in FY26 from 3.1 pc;

* GST reforms to have a sobering impact on inflation, growth;

* US tariffs to impact exports;

* Robust services exports, strong remittance to keep CAD sustainable;

* Forex reserves stood at USD 700.2 bn, sufficient for 11 months of imports;

* RBI keeping close watch on rupee, to take appropriate steps, as warranted;

* Bank credit growth, though lower than last year, continues to support economic activity;

* Revised Basel III capital adequacy norms effective for banks from April 1, 2027;

* RBI to provide enabling framework for banks to finance acquisitions;

* RBI proposes to enhance limits for lending against shares from Rs 20 lakh to Rs 1 crore;

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