India, Dec. 5 -- The Reserve Bank of India expects softer inflation and faster economic growth in the Indian economy, even as the rupee remains under pressure in the absence of a India-US trade deal.

The RBI has lowered its inflation forecast to 2.0% from 2.6% estimated earlier. At the same time, RBI has raised its GDP growth forecase to 7.3% for FY26 as against 6.8% eastimated earlier.

The Reserve Bank of India has cut the repo rate by 25 basis points to 5.25%, even as the monetary policy committee tries to balance India's record-low inflation against a plunging rupee and 8%-plus GDP growth rate.

A majority of the 44 economists surveyed by Bloomberg expected the RBI to cut its benchmark repurchase rate by a quarter point to 5.25% on F...