RBI Keeps Repo Rate Unchanged at 5.25% Amid Global Uncertainty
RBI MPC keeps repo rate at 5.25%, maintains neutral stance. GDP growth projected at 6.5% for FY26. Decision comes amid West Asia conflict and energy supply disruptions.
The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25% in its latest monetary policy review. The six-member Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, unanimously voted to maintain the current stance.
The decision comes amid rising global uncertainties due to the ongoing conflict in West Asia, which has disrupted energy supply chains and pushed crude oil prices higher. The RBI has pegged India's GDP growth for FY26 at 6.5%, slightly lower than earlier estimates.
The central bank maintained its "neutral" monetary policy stance, signalling that future rate decisions will depend on evolving inflation and growth dynamics. Consumer Price Index (CPI) inflation for FY26 is projected at 4.5%, within the RBI's target band of 2-6%.
The decision provides stability to borrowers as EMIs on floating-rate loans will remain unchanged. Banks are expected to continue transmitting previous rate cuts to lending rates over the coming months.
Key Points to Remember
- Repo rate unchanged at 5.25%
- MPC vote: unanimous (6-0)
- GDP growth projection: 6.5% for FY26
- CPI inflation projection: 4.5% for FY26
- Monetary stance: Neutral
- EMIs on floating-rate loans remain unchanged
Exam Relevance
Relevant for UPSC Prelims (Economy — Monetary Policy), SSC CGL (General Awareness), Banking exams (RBI functions). Key terms: Repo rate, MPC, CPI, GDP, neutral stance.
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