NEW DELHI (RAJEEV SHARMA): The Reserve Bank of India announced on Wednesday that it will keep the repo rate steady at 5.5 percent, reflecting a balanced view of current economic conditions both within the country and globally. The decision came after the Monetary Policy Committee (MPC) convened for its three-day meeting.
RBI Governor Sanjay Malhotra confirmed that the MPC members were unanimous in their choice to hold the key policy rate unchanged. The central bank’s stance remains neutral, indicating flexibility to adjust interest rates if economic developments warrant it.
The repo rate serves as the benchmark rate for lending by commercial banks, and its stability suggests that borrowing costs for consumers—such as home and auto loans—are likely to remain consistent in the near term.
Alongside this announcement, the RBI raised its forecast for India’s economic growth in the 2025-26 fiscal year to 6.8 percent, up from the earlier projection of 6.5 percent. Additionally, the inflation outlook for the current financial year was lowered to 2.6 percent from 3.1 percent, signaling a moderation in price pressures.
This policy decision follows a period earlier this year when the RBI gradually reduced the repo rate by a total of one percentage point in steps taken between February and June. The current pause reflects the central bank’s cautious optimism about the country’s economic trajectory.
