RBI MPC on inflation: The central bank reduces inflation to 3.1 %

In a clear indication of price pressures, the reserve bank in India highly reduced inflation from its address in the 2015-26 fiscal year to 3.1 %, a decrease from 3.7 % before that, so that it maintains the rate of reinstalization in the policy unchanged at 5.5 %.

Rbi Sanjay Malhotra, who deals with the results of the MPC’s monetary policy committee meeting, said the central bank will maintain its neutral position, pointing to “balanced risks” of inflation and total economic stability marks.

Malhotra said: “The main inflation remained fixed at 4 %, as expected,” said Malhotra. He pointed out that the South Western South Western Wind and other supportive factors were helping to maintain price pressures under examination.

A sharp decrease in the estimate of inflation Q2

The most important change came in the quarterly expectations. CPI enlargement for Q2 FY26 is reviewed to 2.1 % from 3.4 %, while the Q3 was reduced to 3.1 % of 3.9 %. Q4 estimate was left unchanged at 4.4 %. Q1 FY27 forecasts were presented by 4.9 %.

“The basic inflation increased to 4.4 %, driven by a gathering in gold prices,” Malhotra said, acknowledging the expected temporary relief in the last quarter of the 26th fiscal year.

Nevertheless, the broader inflation path continues to show the refining momentum, enhancing the RBI decision to maintain rates while monitoring the late effects to reduce the average of 100 points per second.

Industrial growth is still incomplete

RBI informed the “low and unequal” growth in the industrial sector, but he repeated that inflationary conditions were under control on a large scale. “The effect of reducing interest rates of 100 points is still revealed,” Malhotra said, indicating that the central bank is still in waiting and viewing.