RBI noted that core inflation excluding precious metals stood at 2.3% to 2.5% (Photo: Agencies)Mumbai: The RBI raised its growth projections and lowered inflation estimates while the monetary policy committee voted unanimously to keep the repo rate unchanged at 5.25% and retain a neutral stance, signalling no immediate rate hike this year despite concerns among forecasters."There is a need for greater clarity to emerge, especially regarding inflation, its path and composition before taking any policy action." the RBI governor Sanjay Malhotra said, even as the MPC revised core inflation forecast for FY27 downward by 40 basis points to 4.3% from 4.7% made in June 2027.The central bank reiterated the same set of risks, citing the resumption of West Asia conflict, deficient or uneven monsoon conditions amid El Niño, and sharp two-way movements in global oil prices.The RBI said underlying demand pressures remain benign. It noted that core inflation excluding precious metals stood at 2.3% to 2.5%, while headline inflation pressures were driven largely by supply side factors such as food and fuel rather than broad based demand. Overall CPI inflation was reduced by 10 basis points to 5.0%, after Q1 inflation came in 30 basis points lower than earlier estimates due to limited pass through of cost pressures.The governor said that real GDP growth for 2026-27 is projected at 6.7 per cent, with Q1 at 7.0 per cent, Q2 at 6.4 per cent, Q3 at 6.5 per cent, and Q4 at 6.8 per cent. Real GDP growth for Q1:2027-28 is projected at 7.3 per cent with the risks are evenly balanced. “CPI inflation for 2026-27 is projected to be 5.0 per cent with Q2 at 4.7 per cent, Q3 at 5.9 per cent, and Q4 at 5.5 per cent. Inflation for Q1:2027-28 is projected at 5.3 per cent with risks being evenly balanced,” said Malhotra."On the demand-side, impact of weak monsoon on rural consumption may be partly offset by suppportive allied sector activities and various government schemes. Buoyancy in services sector and steady employment conditions should suppport urban consumption. Strong capacity utilisation, robust credit flow and the government’s continued thrust on infrastructure are expected to sustain investment activity," said Malhotra.