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 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 in previous episodes of crises and many other economies.