The Reserve Bank of India has kept its key benchmark interest rate the repo rate unchanged at 5.25% in its latest Monetary Policy Committee (MPC) meeting, reinforcing its cautious stance on inflation and economic stability.
The decision was taken unanimously by the six member MPC led by RBI Governor Sanjay Malhotra, who noted that price pressures remain moderate and within the central bank’s target range. The policy stance was retained as neutral, giving the RBI flexibility to respond to changing economic conditions without committing to immediate tightening or easing.
By holding the repo rate steady, lending and borrowing costs for businesses and households are expected to remain stable in the near term. The standing deposit facility rate remains at 5.00%, while the marginal standing facility and bank rate are unchanged at 5.50%.
The RBI highlighted that retail inflation has largely stayed moderate, supported by adequate food supplies and stable core price dynamics. Domestic demand and investment activity remain resilient, and GDP growth projections are healthy, which reduced the urgency for an immediate rate change despite global uncertainties.
The central bank indicated that future policy decisions will depend on incoming data on Inflation, Economic growth and Global developments. The decision signals a continued focus on balancing economic growth with price stability.
