Reserve Bank of India Governor Sanjay Malhotra on Wednesday said the Monetary Policy Committee (MPC) has kept the repo rate unchanged at 5.25%, maintaining a cautious approach amid global uncertainties linked to the West Asia conflict.
The policy decision comes as a month and a-half-long West Asia conflict has disrupted energy supplies, shot up crude oil prices and created fiscal and inflationary pressures for import-dependent nations like India.
The repo rate has remained unchanged since December 2025, when it was last revised. The MPC unanimously voted to maintain the status quo while retaining a ‘neutral’ policy stance.
“After a detailed assessment of evolving macroeconomic and financial conditions and the outlook, the MPC unanimously decided to keep the policy repo rate unchanged,” the Governor said.
The standing deposit facility (SDF) rate remains at 5%, while the marginal standing facility (MSF) rate and the bank rate continue at 5.5%.
The Governor said headline inflation remains contained and below the central bank’s 4% target, with the food price outlook comfortable in the near term. However, he flagged a recent spike in energy prices as a potential risk to inflation.
High-frequency indicators point to sustained economic momentum and activity, he added.
The RBI projected GDP growth for 2026–27 at 6.9%, compared with 7.6% in the previous financial year. CPI inflation for the current fiscal is estimated at 4.6%, the Governor said.
(With inputs from PTI)
