The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, maintaining a cautious stance as inflation risks and global uncertainties persist due to the ongoing conflict in the Middle East.
The decision was announced following a three-day meeting of the Monetary Policy Committee (MPC), which concluded on Wednesday. The six-member panel, led by Governor Sanjay Malhotra, voted unanimously to hold the rate steady. The MPC also retained its monetary policy stance as ‘neutral,’ signaling that future moves will be guided by incoming economic data.
In addition to the repo rate, the RBI kept the Standing Deposit Facility (SDF) rate unchanged at 5% and the Marginal Standing Facility (MSF) rate along with the bank rate at 5.5%.
Governor Malhotra noted during the announcement, “Crude oil prices, currencies, and financial markets remain volatile, fluctuating in line with the changing intensity and uncertainties of the West Asia conflict. In this backdrop, the MPC met for its third bi-monthly meeting of this financial year to deliberate and decide on the policy.”
The central bank last adjusted the repo rate in December 2025, when it was lowered from 5.50% to 5.25%. Since then, the RBI has held rates steady, aiming to balance inflation control with support for economic activity.
By keeping the repo rate unchanged, the RBI hopes to prevent inflation from accelerating further without putting excessive pressure on economic growth. The repo rate is the key interest rate at which the RBI lends to commercial banks, directly influencing loan and deposit rates across the economy.
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