The Reserve Bank of India (RBI) has kept the interest rates unchanged. RBI Governor Sanjay Malhotra announced the fourth bi-monthly policy of the current fiscal in Mumbai today. Mr Malhotra said, RBI has decided to keep its repo rate unchanged at 5.5 per cent. He said the Monetary Policy Committee (MPC) has voted unanimously to keep the policy repo rate unchanged and decided to continue with the neutral stance. 

 

 

The RBI Governor said that the Marginal Standing Facility rate is maintained at 5.75 per cent and the Standing Deposit Facility (SDF) rate at 5.25 per cent. RBI has projected inflation at 2.6 per cent for the current financial year, lower than the earlier estimate of 3.1 percent, while Real GDP growth for the year has been revised upwards to 6.8 percent from the earlier estimate of 6.5 per cent.

 

 

The MPC indicated that the decision comes at a time of steady domestic growth, subdued inflation, and heightened global risks. It also highlighted that escalating trade tariff disputes and H-1B visa tensions with the United States have added to uncertainty, prompting the RBI to adopt a watchful approach while maintaining flexibility in its policy direction.

RBI Governor expressed confidence that GST rate rationalisation is likely to offset issues related to global trade and other uncertainties.