RBI MPC Keeps Repo Rate Unchanged
Repo Rate Stays at 5.25% as RBI Holds Rates: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.25%, opting to leave key policy rates unchanged in its latest monetary policy review. The decision was taken by the six-member Monetary Policy Committee (MPC) after its meeting, which commenced on Monday. RBI Governor Sanjay Malhotra announced the outcome following the conclusion of the policy discussions.
RBI continues status quo on interest rates: With this announcement, the central bank has kept the repo rate unchanged throughout the year. The most recent adjustment was made in December 2025, when the RBI lowered the benchmark lending rate by 25 basis points. The MPC also reaffirmed its neutral policy stance, signalling that future decisions will remain guided by incoming economic data.
Inflation remains above the comfort level: Explaining the rationale behind the decision, Governor Sanjay Malhotra said that retail inflation continues to exceed earlier expectations. He pointed out that higher food and fuel prices have been the primary contributors to inflation, while supply-side constraints have added to the pressure. The Governor also highlighted that uncertainties surrounding the monsoon could influence inflation trends in the months ahead. Even so, he noted that resilient domestic demand is providing strong support to the country’s economic growth.
ALSO READ: Airtel Q1 Profit Rises 11.5% to ₹8,167 Crore; Revenue Beats Estimates
