RBI keeps repo rate unchanged at 5.25 %, stance remains ‘neutral’
The central bank noted that geopolitical tensions have increased significantly since the previous policy meeting, largely due to the ongoing conflict in West Asia.
RBI repo rate: Reserve Bank of India Governor Sanjay Malhotra on Wednesday announced that the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 5.25%, as the central bank opted for a cautious approach amid global uncertainty arising from the West Asia conflict.
The repo rate has remained steady since December 2025, when it was last revised.
Announcing the decision, the Governor said that after a detailed review of evolving macroeconomic and financial conditions, as well as the overall outlook, the MPC unanimously voted to hold the policy repo rate. The standing deposit facility rate also remains unchanged at 5%, while the marginal standing facility rate and bank rate continue at 5.5%.
The RBI has also maintained its neutral policy stance.
Why RBI held rates steady
The Governor said the decision comes against the backdrop of rising global uncertainty. The central bank noted that geopolitical tensions have increased significantly since the previous policy meeting, largely due to the ongoing conflict in West Asia.
While inflation is currently under control and remains below the target, the RBI flagged growing upside risks. These include rising energy prices and the potential impact of adverse weather conditions on food prices.
On the growth front, the RBI said the economy continues to show strong momentum, supported by robust consumption and investment trends. High-frequency indicators also point to sustained economic activity.
However, the Governor cautioned that the West Asia conflict could weigh on growth by increasing input costs and disrupting supply chains.