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Five-point takeaway from the June MPC: repo held at 5.25%, neutral stance maintained, GDP forecast trimmed to 6.6% from 6.9%, CPI forecast raised to 5.1% from 4.6%, and monsoon flagged as the dominant domestic risk. Notes the 100bp cumulative cut over FY25-26 as context for the hold.

“The MPC kept the repo rate unchanged at 5.25% and maintained the neutral stance while raising its inflation forecast amid sub-normal monsoon concerns.”