Mumbai, Apr 8:
The Reserve Bank of India kept its key policy repo rate unchanged at 5.25%, maintaining status quo for yet another policy cycle amid global uncertainties.
The decision was taken unanimously by the Monetary Policy Committee (MPC), which also retained its āneutralā stanceāindicating flexibility to respond to evolving economic conditions. The central bank cited concerns over volatile crude oil prices, geopolitical tensions, and global financial market instability as key reasons for holding rates.
RBI noted that while inflation remains within its comfort range, upside risks persist due to external factors. Food price fluctuations and supply-side pressures continue to be closely monitored. At the same time, domestic economic growth has shown resilience, supported by strong consumption and investment activity.
Governor Sanjay Malhotra stated that the policy aims to strike a balance between controlling inflation and supporting growth. The RBI also reiterated its commitment to keeping inflation aligned with the medium-term target of 4%.
For borrowers, the decision means lending rates linked to the repo rateāsuch as home and auto loansāare likely to remain unchanged, offering relief in terms of stable EMIs. However, deposit rates are also expected to stay steady.
Economists believe the RBI is adopting a āwait-and-watchā approach, leaving room for future action depending on inflation trends and global developments. The next policy move will likely hinge on how external risks and domestic price pressures evolve in the coming months.