RBI Keeps Repo Rate Unchanged At 5.25%
The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 5.25%, taking a cautious approach as the West Asia conflict, crude oil prices and currency pressure create fresh risks for inflation and growth.
RBI MPC Holds Repo Rate At 5.25%
RBI Governor Sanjay Malhotra announced that the six-member Monetary Policy Committee voted unanimously to keep the policy repo rate unchanged at 5.25%.
The decision means there will be no immediate change in benchmark borrowing rates. Home loan, vehicle loan and other floating-rate borrowers are unlikely to see any major EMI relief from this policy review.
Inflation Risks From West Asia Conflict
The RBI said inflation remains under watch because of global uncertainty, especially the West Asia conflict and its impact on crude oil prices. Since India imports a large share of its energy requirements, higher oil prices can raise fuel costs, transport expenses and broader inflation.
The central bank has also raised its inflation forecast for the current financial year to 5.1%, while keeping its policy stance neutral.
RBI Lowers Growth Forecast
The RBI has lowered its GDP growth projection to 6.6%, reflecting caution over global instability, energy prices and external demand conditions.
Governor Malhotra said the Indian economy remains resilient, but the central bank will continue to monitor inflation, growth and financial stability before taking further policy action.
The government has mandated the RBI to keep retail inflation at 4%, with a tolerance band of two percentage points on either side.
