RBI holds repo rate steady in first policy decision after budget citing stable inflation outlook
RBI Keeps Repo Rate Unchanged After Budget
The Reserve Bank of India (RBI) kept the benchmark repo rate unchanged in its first monetary policy decision after the Union Budget, maintaining its cautious approach amid moderating inflation and steady economic growth signals.
RBI Repo Rate Decision After Budget
The Monetary Policy Committee decided to hold the repo rate steady, signalling continuity in its inflation-focused policy stance. The central bank noted that price pressures are easing but still require monitoring, especially in food items and global commodity trends. The pause indicates the RBI prefers to assess the impact of previous rate actions and fiscal measures before altering borrowing costs.
Inflation Outlook And Growth Balance
The RBI stated that inflation remains within the tolerance band but risks persist due to weather-linked food supply factors and external uncertainties. Economic activity continues to show resilience, supported by domestic demand and investment momentum. The central bank aims to balance price stability while sustaining growth without tightening financial conditions prematurely.
Impact On Loans And Borrowers
With the repo rate unchanged, lending and deposit rates are expected to remain broadly stable in the near term. Home loan borrowers and businesses are unlikely to see immediate changes in interest rates, as banks typically adjust lending costs in line with policy rate movements.
The central bank indicated it will remain data-dependent and act if inflation deviates from targets.
