The Reserve Bank of India has revised its FY26 CPI inflation target down to 2.6%, from earlier projections of 3.7% in June and 3.1% in August. RBI Governor Sanjay Malhotra cited lower food prices, GST rationalisation, and a strong monsoon as key factors. The MPC also kept the repo rate unchanged at 5.5%, reflecting a stable macroeconomic outlook.