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Policy easing resumes as RBI sharpens growth outlook and inflation path

RBI resumed rate easing with a 25 basis point cut while upgrading FY26 growth to 7.
The Reserve Bank of India cut the repo rate by 25 basis points to 5.25 percent, marking the first reduction since early 2025. The central bank also raised its FY26 GDP growth forecast to 7.3 percent and revised CPI inflation to 2 percent. India’s Q2 FY26 GDP expanded 8.2 percent, supported by festive demand and GST rationalization.