The Reserve Bank of India's (MPC) unanimously decided to keep the at 5.25%, maintaining a neutral stance amidst global uncertainties. This decision comes alongside projections for India's real at 6.9% for the current fiscal year.
5.25%
Current Repo Rate
Previous Repo Rate: 5.25%→5.25%
The Reserve Bank of India (RBI) announced yesterday its decision to hold the benchmark repo rate steady at **5.25%**, signaling a neutral stance in its first bi-monthly monetary policy review for the current fiscal year. This move was a unanimous decision by the Monetary Policy Committee (MPC). Consequently, the Standing Deposit Facility (SDF) rate remains at 5%, and the Marginal Standing Facility (MSF) rate and Bank Rate are at 5.50%. The RBI also projected India's real GDP growth for the current fiscal year at 6.9%, with Consumer Price Index (CPI) inflation anticipated to be 4.6%. The central bank highlighted persistently elevated energy prices and potential El Niño conditions as upside risks to inflation.
💭 If you're wondering…
A neutral stance means the central bank is not actively looking to either tighten (raise rates) or ease (cut rates) monetary policy, instead opting for a wait-and-watch approach, ready to respond to evolving economic data.
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