RBI holds key policy rate at 5.25%

Mumbai: The Reserve Bank of India’s (RBI) monetary policy committee (MPC) on Wednesday kept the repo rate steady at 5. 25% and maintained its stance as ‘neutral’.

A Mint poll of 10 economists and market participants had pointed to rising inflation risks and a weakening growth outlook, with all expecting the MPC to hold rates while signalling a more cautious policy stance.

In 2025, the RBI had cumulatively cut the repo rate—the rate at which it lends short-term funds to banks—by 125 basis points (bps), with the last cut of 25 bps in December to 5. 25%.

RBI governor Sanjay Malhotra said that India is better placed today than previous episodes of crises and many other economies. RBI had deferred giving out projections on inflation and growth for FY27 because of the new GDP series.