Indian central bank holds firm on key rate but raises inflation forecast
Currencies
Reserve Bank of India expects prices to rise 5.1% for the fiscal year through March 2027
India’s inflation rate, a fundamental focus of the central bank, came in at 3.48% in April, below the RBI’s target of 4%. (Photo by Takanori Okabe)
SOUMYAJIT SAHA
June 5, 2026 13:43 JST
Updated on June 5, 2026 15:45 JST
MUMBAI — The Reserve Bank of India on Friday held its key policy rate at a four-year low of 5.25%, opting to wait for further data on the effects of the energy crisis roiling major oil importers like India, even as it heightened its inflation forecast by half a percentage and lowered its growth forecast.
