Reserve Bank of India (RBI) Has given good news for the common people. RBI Governor Sanjay Malhotra released the monetary policy review today said that the growth rate of GDP (GDP) for the current financial year 2025-26 will increase at a rate of 6.5 percent. Not only this, inflation will decrease. The central bank has reduced inflation estimate from 3.7 percent to 3.1 percent for the current financial year. That is, there is going to be more relief in the coming days on the inflation front. Economists say that due to reduced inflation, the expenses of the common people will decrease and the savings will increase. This will strengthen their financial position.
Inflation is steadily decreasing
On inflation, the governor said that the consumer price index (CPI) -based inflation fell to the 77 -month low of 2.1 percent in June in June. The inflation rate has come down mainly due to a steep decline in food inflation. He said that inflation estimates for 2025-26 have been more favorable than expected in June. The RBI said that the Consumer Price Index (CPI) based inflation for 2025-26 is estimated to be 3.1 percent. Its second quarter is estimated to be 2.1 percent, 3.1 percent in the third quarter and 4.4 percent in the fourth quarter. At the same time, retail inflation is estimated to be 4.9 percent for the first quarter of FY 2026-27. Risters are equally balanced on both sides. Malhotra said that as the Indian economy is trying to make its right place in the global economy.
Indian economy will grow firmly
Sharing the decision of the third bilateral monetary policy for FY 2025-26, RBI Governor Sanjay Malhotra said that better Southwest monsoon, low inflation, capacity use and favorable financial conditions are supporting domestic economic activities. Assistant monetary, regulatory and fiscal policies including strong government capital expenditure are also expected to raise demand. Due to continuous increase in construction and trade in the coming months, there is a possibility of speed in the service sector. That is, in the coming months, despite all the global lifting-blows, the pace of growth will remain fast. The governor said, the growth rate is strong and is made according to estimates. However, this is less than our aspirations. The uncertainties of the fee are still emerging. The benefit of monetary policy is still available. Since February 2025, the impact of one percent cut in repo rate on the economy is still going on. He said that the domestic growth rate is stable and is roughly moving as per the assessment.
Urban consumption improved
However, some high-frequency (such as GST collection, export, power consumption etc.) indicators have given mixed indications in May-June. Malhotra said that there is stability in rural consumption, while urban consumption has improved, especially discretionary expenditure is slow. He said that the long-lasting geopolitical tension, global uncertainties and adverse conditions arising from instability in global financial markets are inciting risk to the increase landscape. The governor said that keeping in mind all these factors, the actual GDP growth rate for 2025-26 is estimated to be 6.5 percent. Its first quarter is estimated to be 6.5 percent, 6.7 percent in the second quarter, 6.6 percent in the third quarter and 6.3 percent in the fourth quarter. The actual GDP growth rate for the first quarter of FY 2026-27 is estimated to be 6.6 percent. Risters are equally balanced on both sides.
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