RBI Lowers Growth and Inflation Predictions for 2025-26: What You Need to Know

The Reserve Bank of India (RBI) recently shared new updates about India’s economy. During a talk on Wednesday, RBI Governor Sanjay Malhotra revealed that they have reduced their predictions for India’s economic growth and inflation.

For the financial year 2025-26, the RBI now expects India’s economy to grow by 6.5%, down from their earlier estimate of 6.7%. They believe that in the first three months, the economy will grow at 6.5%. In the second three months, it might increase to 6.7%. But for the third quarter, it is expected to drop slightly to 6.6%, and by the end of the year, it could be 6.3%.

Additionally, the RBI has changed its outlook on inflation, which measures the rise in prices of everyday items. They have lowered their inflation estimate from 4.2% to 4%. In the first quarter, inflation is expected to be 3.6%. It may rise to 3.9% in the second quarter, then go down to 3.8%. But by the last quarter, it could increase a bit to 4.4%.