New Delhi: The Reserve Bank of India (RBI) decided to maintain the repo rate at 5.5 percent on Wednesday, citing a careful assessment of both domestic and global economic factors. The decision was announced by RBI Governor Sanjay Malhotra following the conclusion of the three-day Monetary Policy Committee (MPC) meeting.
The six-member MPC unanimously agreed to keep the key lending rate unchanged, while also retaining a neutral monetary policy stance. This approach signals the central bank’s readiness to adjust rates as needed in response to evolving economic trends.
The repo rate, which influences the cost at which commercial banks borrow from the RBI, plays a crucial role in shaping lending rates across the economy. With the rate held steady, interest rates on retail loans such as home and vehicle financing are expected to remain stable for the time being.
In addition to the rate decision, the RBI upgraded its forecast for India’s GDP growth in the 2025-26 fiscal year to 6.8 percent, up from the previous estimate of 6.5 percent. Meanwhile, the retail inflation projection for the current year was revised downward to 2.6 percent from 3.1 percent, reflecting easing price pressures.
This marks the second consecutive policy review with no change in the repo rate, following a series of cuts totaling one percentage point earlier this year between February and June. The central bank’s cautious approach underscores its focus on supporting sustainable growth while keeping inflation in check.
