National Times Bureau :- The Reserve Bank of India on Wednesday decided to keep the key repo rate unchanged at 5.5%. The decision was taken after the Monetary Policy Committee (MPC) concluded its three-day meeting led by Governor Sanjay Malhotra.
RBI Governor Sanjay Malhotra announced that the central bank maintained its neutral stance.
“After a detailed assessment of the evolving macroeconomic conditions and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged at 5.5%. Consequently, the SDF rate remains at 5.25%, while the MSF rate and the bank rate remain at 5.75%. The MPC also decided to continue with a neutral stance,” said Sanjay Malhotra.
On the Monetary Policy, RBI Governor Sanjay Malhotra further said,”The MPC voted unanimously to keep the policy repo rate unchanged at 5.5%. Consequently, the STF rate remains at 5.25%, while the MSF rate and the bank rate remain at 5.75%. The MPC also decided to continue with the neutral stance… The average headline inflation for this year has consequently been revised, lowered from 3.7 % which was projected in June, 3.1 % in August, to 2.6%. “
“Headline inflation for Q4 this year and Q1 next year too has been revised downwards and is broadly aligned with the target despite unfavourable base effects. Core inflation for the year and Q1 next year is also expected to remain contained… Moreover, prevailing global uncertainties and tariff-related developments are likely to decelerate growth in H2 this year and beyond. The current macroeconomic conditions and the outlook has opened up policy space for further supporting growth… The trade-related uncertainties are also unfolding,” he further added.
