The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Friday unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, maintaining its neutral policy stance amid rising global uncertainties, geopolitical tensions in West Asia and concerns over inflationary pressures. Announcing the decision, RBI Governor Sanjay Malhotra said that after a detailed assessment of evolving macroeconomic and financial conditions, the MPC voted unanimously to leave the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25 per cent. "Consequently, the Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the Bank Rate at 5.5 per cent," the Governor said. Explaining the rationale behind the decision, the RBI Governor highlighted the challenging global economic environment marked by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment. "The global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility, and cautious business sentiment. Let me at the very outset emphasise that the Indian economy entered this episode of global turbulence with much better fundamentals than in previous similar episodes," he said. The Governor noted that while India remains relatively well-positioned, policymakers must use the current phase of global turbulence to further strengthen the country's economic resilience. "It is important to not only confront and address these challenges, but also, at the same time, take this as an opportunity to further enhance our resilience," he added. The RBI Governor further pointed to the continuing geopolitical impasse in West Asia, escalating energy prices and global supply chain disruptions as key risks weighing on the world economy. According to him, monetary policy across major economies has become increasingly cautious as central banks grapple with difficult trade-offs between supporting growth and containing inflation. He also observed that major advanced economy central banks may increasingly lean towards monetary tightening. While global equity markets continue to remain buoyant, supported by optimism surrounding artificial intelligence-led growth, global bond markets remain under pressure due to renewed inflation concerns and worries over debt sustainability, he said. The latest decision follows the MPC's April policy meeting, where it had also unanimously voted to keep the repo rate unchanged at 5.25 per cent while retaining the neutral policy stance.Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The latest decision follows the MPC's April policy meeting, where it had also unanimously voted to keep the repo rate unchanged at 5.25 per cent while retaining the neutral policy stance.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Friday unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, maintaining its neutral policy stance amid rising global uncertainties, geopolitical tensions in West Asia and concerns over inflationary pressures. Announcing the decision, RBI Governor Sanjay Malhotra said that after a detailed assessment of evolving macroeconomic and financial conditions, the MPC voted unanimously to leave the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25 per cent. "Consequently, the Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the Bank Rate at 5.5 per cent," the Governor said. Explaining the rationale behind the decision, the RBI Governor highlighted the challenging global economic environment marked by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment. "The global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility, and cautious business sentiment. Let me at the very outset emphasise that the Indian economy entered this episode of global turbulence with much better fundamentals than in previous similar episodes," he said. The Governor noted that while India remains relatively well-positioned, policymakers must use the current phase of global turbulence to further strengthen the country's economic resilience. "It is important to not only confront and address these challenges, but also, at the same time, take this as an opportunity to further enhance our resilience," he added. The RBI Governor further pointed to the continuing geopolitical impasse in West Asia, escalating energy prices and global supply chain disruptions as key risks weighing on the world economy. According to him, monetary policy across major economies has become increasingly cautious as central banks grapple with difficult trade-offs between supporting growth and containing inflation. He also observed that major advanced economy central banks may increasingly lean towards monetary tightening. While global equity markets continue to remain buoyant, supported by optimism surrounding artificial intelligence-led growth, global bond markets remain under pressure due to renewed inflation concerns and worries over debt sustainability, he said. The latest decision follows the MPC's April policy meeting, where it had also unanimously voted to keep the repo rate unchanged at 5.25 per cent while retaining the neutral policy stance. Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The latest decision follows the MPC's April policy meeting, where it had also unanimously voted to keep the repo rate unchanged at 5.25 per cent while retaining the neutral policy stance.

RBI monetary policy: Repo rate unchanged at 5.25% amid West Asia crisis

The Reserve Bank of India’s Monetary Policy Committee (MPC) announced to keep the repo rate unchanged at 5.25 per cent on Wednesday. This marked a second consecutive pause amid rising global tensions in West Asia. The decision taken by the RBI shows a cautious approach because inflation risks have increased amid the global uncertainties, and the apex bank has maintained that domestic growth momentum remains strong and resilient.&nbsp;In another key move, RBI Governor Sanjay Malhotra announced the suspension of due diligence requirements for MSMEs on select trade platforms, aiming to improve ease of doing business.&nbsp;Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.&nbsp;The Monetary Policy Committee, led by the RBI Governor, convenes every two months to assess key economic indicators and decide on policy direction. The central bank had earlier kept the rate unchanged in its August, October, and February 2026 reviews.<h3>Key highlights of RBI MPC Meeting:</h3><ul><li>Repo rate unchanged at 5.25%; policy stance remains neutral.</li><li>Second consecutive pause after February, following a 25 basis points cut in December 2025.</li><li>Inflation risks rising, with projections revised upward, particularly for FY26 and near-term quarters.</li><li>FY27 CPI inflation forecast at 4.6%, within RBI’s target band.</li><li>Inflation to peak mid-year, projected at 4 per cent in Q1 FY27, rising to 4.4 per cent in Q2, peaking at 5.2 per cent in Q3, and easing to 4.7 per cent in Q4.</li><li>GDP growth outlook improved, FY26 estimate raised to 7.6 per cent from 7.4 per cent earlier.</li><li>FY27 growth projected at 6.9%, with risks tilted downward due to high energy prices and global uncertainties.</li><li>Domestic demand remains strong, driven by services, manufacturing resilience, and healthy balance sheets.</li><li>Private consumption and urban demand are expected to sustain economic momentum.</li><li>Global risks persist, especially due to geopolitical tensions like the US-Iran conflict, affecting supply chains.</li><li>Supply disruptions may fuel inflationary pressures, impacting demand conditions.</li><li>Government support measures on exports and supply chains to cushion external shocks.</li><li>India’s macro fundamentals remain strong, with the RBI emphasising vigilance and a data-driven policy approach.</li></ul>Also read: <a href="https://www.wionews.com/photos/iran-s-10-point-plan-explained-compensation-sanctions-hormuz-and-more-here-s-what-tehran-wants-after-2-week-ceasefire-deal-1775620008012/1775620008013">Iran’s 10-point plan EXPLAINED: Compensation, sanctions, Hormuz and more, here's what Tehran wants after 2-week ceasefire deal</a>

Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.

The Reserve Bank of India’s Monetary Policy Committee (MPC) announced to keep the repo rate unchanged at 5.25 per cent on Wednesday. This marked a second consecutive pause amid rising global tensions in West Asia. The decision taken by the RBI shows a cautious approach because inflation risks have increased amid the global uncertainties, and the apex bank has maintained that domestic growth momentum remains strong and resilient. In another key move, RBI Governor Sanjay Malhotra announced the suspension of due diligence requirements for MSMEs on select trade platforms, aiming to improve ease of doing business. Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development. The Monetary Policy Committee, led by the RBI Governor, convenes every two months to assess key economic indicators and decide on policy direction. The central bank had earlier kept the rate unchanged in its August, October, and February 2026 reviews. Key highlights of RBI MPC Meeting: Repo rate unchanged at 5.25%; policy stance remains neutral. Second consecutive pause after February, following a 25 basis points cut in December 2025. Inflation risks rising, with projections revised upward, particularly for FY26 and near-term quarters. FY27 CPI inflation forecast at 4.6%, within RBI’s target band. Inflation to peak mid-year, projected at 4 per cent in Q1 FY27, rising to 4.4 per cent in Q2, peaking at 5.2 per cent in Q3, and easing to 4.7 per cent in Q4. GDP growth outlook improved, FY26 estimate raised to 7.6 per cent from 7.4 per cent earlier. FY27 growth projected at 6.9%, with risks tilted downward due to high energy prices and global uncertainties. Domestic demand remains strong, driven by services, manufacturing resilience, and healthy balance sheets. Private consumption and urban demand are expected to sustain economic momentum. Global risks persist, especially due to geopolitical tensions like the US-Iran conflict, affecting supply chains. Supply disruptions may fuel inflationary pressures, impacting demand conditions. Government support measures on exports and supply chains to cushion external shocks. India’s macro fundamentals remain strong, with the RBI emphasising vigilance and a data-driven policy approach. Also read: Iran’s 10-point plan EXPLAINED: Compensation, sanctions, Hormuz and more, here's what Tehran wants after 2-week ceasefire deal

Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.

RBI holds repo rate steady at 5.25%, sees GDP growth at 6.9%; warns of US-Iran war impact

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RBI monetary policy: Repo rate unchanged at 5.25% amid West Asia crisis

RBI holds rates steady at 5.25%, sees GDP growth at 6.9%: Key highlights inside