RBI Monetary Policy: MPC Keeps Repo Rate Unchanged At 5.25%; Maintains Neutral Stance — All Details Here

The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5. 25%, in line with the expectations of the vast majority of market observers.

All 33 economists tracked by Bloomberg anticipated no change in the benchmark rate, pointing to a broad consensus that the Monetary Policy Committee will extend its pause while assessing evolving global and domestic conditions.

RBI Governor Malhotra said real GDP growth for the current fiscal year is projected at 6. 9%, while cautioning that the domestic growth outlook continues to face headwinds from an uncertain global macroeconomic environment.

CPI inflation for FY27 is projected at 4. 6%. He added that the RBI will continue giving core inflation forecast going ahead. MSF and Bank rates also remain unchanged at 5. 50%, and SDF rate is also maintained at 5. 00%.

RBI Governor Malhotra said the global economy is facing unprecedented challenges, with rising downside risks to growth, particularly due to elevated oil prices and supply‑side constraints that have reignited inflation concerns.

Commentary From The GovernorHe noted that India's economic fundamentals had already been strong and confidence‑inspiring even before the escalation of tensions in Middle East, and stressed that the country's macro position is stronger today than during many previous global crises.

According to Malhotra, India's underlying economic fundamentals remain firmly on a strong footing despite the volatile global backdrop.

RBI Governor Malhotra said that core inflation pressures remain subdued, even as the Monetary Policy Committee flagged that the ongoing Middle East conflict could weigh on India's growth outlook.