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RBI keeps repo rate unchanged at 5.25%, maintains neutral stance

RBI Governor Sanjay Malhotra on Friday said that the central bank’s monetary policy for the full financial year beginning April will be guided by new inflation data based on the revised GDP series, which is scheduled to be released later this month.

RBI allows banks to fund M&As, lend in rupee to residents of India’s neighboursRBI Governor Sanjay Malhotra said monetary policy from April will be guided by new inflation data based on the revised GDP series, to be released later this month. (File)

The Reserve Bank of India (RBI) on Friday kept the policy repo rate unchanged at 5.25%, as the six-member Monetary Policy Committee (MPC) concluded its final bi-monthly meeting of FY26.

RBI Governor Sanjay Malhotra on Friday said that the central bank’s monetary policy for the full financial year beginning April will be guided by new inflation data based on the revised GDP series, which is scheduled to be released later this month.

Speaking after the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25%, Malhotra said the upcoming data would provide a clearer assessment of price trends and macroeconomic conditions, and help fine-tune future policy actions.

The Governor also struck an optimistic note on growth prospects, citing recent and upcoming trade developments. “With the signing of the India–EU trade deal and the US trade agreement in sight, growth momentum is likely to be sustained for a longer period,” Malhotra said.

He said the RBI would remain “proactive” in its liquidity management operations to ensure adequate flow of funds to meet the productive requirements of the economy.

The Monetary Policy Committee (MPC), he added, also noted that government security (G-sec) yields have continued to stabilise over the past eight months, broadly tracking global trends.

 

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