The Reserve Bank of India revised its macroeconomic outlook by lowering its inflation forecast to 2.0 percent from 2.6 percent while raising FY26 GDP growth expectations to 7.3 percent . The central bank also reduced the repo rate to 5.25 percent, citing easing price pressures and supportive domestic demand conditions. Officials acknowledge d external risks, including currency volatility and global monetary tightening, but maintained that India’s growth momentum remains intact.