India's central bank cuts inflation forecast for FY26 to 2.6%, holds rate at 5.5%.

The Reserve Bank of India lowered its inflation forecast for FY26 to 2.6% from 3.1%, citing falling food prices, GST rate rationalization, and strong monsoon-driven agricultural output. The central bank maintained its policy repo rate at 5.5% in a unanimous decision, citing global uncertainties but confidence in India’s inflation trajectory and growth momentum.