RBI Holds Repo Rate Steady Amid Global Oil Price Volatility
The Reserve Bank of India (RBI) maintained its benchmark repo rate at 5.25% and kept its neutral monetary policy stance, awaiting greater clarity on inflation risks from volatile global crude oil prices.
RBI Governor Sanjay Malhotra stated that the six-member Monetary Policy Committee unanimously decided to keep the policy repo rate unchanged, also retaining the Standing Deposit Facility rate at 5%, while leaving the Marginal Standing Facility rate and the bank rate at 5.5%.
The central bank slightly raised its GDP growth forecast for the current financial year to 6.7% from 6.6%, reflecting stronger-than-expected economic activity during the first quarter.
Markets showed a muted reaction to the policy announcement, with India's benchmark 10-year government bond yield largely unchanged at 6.78%, and the rupee weakening more than 0.1% to 95.09 against the US dollar.