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RBI MPC Meeting: Repo Rate Held at 5.25%, Neutral Stance Retained Amid Global Tensions (Videos)

The Reserve Bank of India (RBI) on Wednesday kept the benchmark repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) unanimously deciding to maintain the status quo.

RBI MPC Meeting: Repo Rate Held at 5.25%, Neutral Stance Retained Amid Global Tensions (Videos)
RBI Governor Sanjay Malhotra (Photo Credits: ANI)
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New Delhi, August 5: The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent, while maintaining the status quo in its latest Monetary Policy Committee (MPC) meeting amid the ongoing geopolitical tensions. The Standing Deposit Facility (SDF) rate also remained at 5 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate  stood at 5.5 per cent.

RBI Governor Sanjay Malhotra said that trade uncertainties linger as US has imposed fresh tariffs. Crude oil and financial markets remain volatile amid West Asia crisis, he added. Several economists had expected the six-member MPC to maintain the status quo on interest rates and retain its neutral policy stance. RBI Repo Rate: Reserve Bank of India Holds Repo Rate at 5.25%, Maintains Neutral Instance Amid Global Uncertainty.

RBI Keeps Policy Repo Rate Unchanged at 5.25%

RBI Governor Sanjay Malhotra Speaks on Monetary Policy Statement

The policy review comes at a time when inflation has edged higher in recent months, though it remains within the RBI's tolerance band. Rising crude oil prices, currency movements and developments in West Asia remain key factors influencing the central bank's outlook. At the same time, domestic economic conditions have remained resilient, supported by healthy growth momentum, favourable monsoon conditions and robust foreign capital inflows.

It the earlier MPC meeting in June, The MPC unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, in line with the expectations from economists. The Standing Deposit Facility (SDF) rate was set at 5 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate stood at 5.5 per cent. RBI Repo Rate Kept Unchanged, What It Means for Your EMIs.

Malhotra said while the economy remains resilient, incipient stress in certain segments are there and there are considerable risks surrounding both inflation and growth assessments.

In the June meeting, the RBI had revised its real GDP growth forecast for FY27 to 6.6 per cent, down from the earlier projection of 6.9 per cent, reflecting the impact of heightened global uncertainty, geopolitical tensions, supply chain disruptions, and rising energy prices.

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