The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, maintaining its current monetary policy stance amid resilient domestic economic growth and global uncertainties.
Announcing the Monetary Policy Committee (MPC) decision, RBI Governor Sanjay Malhotra said India's economy continues to be supported by strong domestic demand and remains the world's fastest-growing major economy.
Editorial Insight
Key Highlights
RBI keeps the repo rate unchanged at 5.25%.
India's economy continues to show resilient domestic demand.
April–June quarter growth performed better than expected.
RBI lowers FY2027 CPI inflation forecast to 5%.
Global geopolitical tensions remain a key risk.
The Governor noted that economic activity during the April–June quarter of the current financial year performed better than expected.
The RBI also revised its Consumer Price Index (CPI) inflation projection for FY2027 to 5%, down from the earlier estimate of 5.1%.
However, the central bank cautioned that geopolitical tensions, particularly the West Asia conflict, continue to pose risks to the global economy by disrupting key trade routes and creating uncertainty in international markets.
Editorial Analysis
Why This Matters
The RBI's decision to maintain the repo rate signals confidence in the current growth trajectory while balancing inflation risks. Stable interest rates can provide predictability for borrowers, businesses and financial markets.
