No Change in Repo Rate as RBI Maintains Policy Pause, loan interest rates will remain stable
RBI Holds Repo Rate Steady, Loan Interest Rates to Remain Unchanged: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 percent. RBI Governor Sanjay Malhotra announced the decision on Friday. As a result, loan interest rates will remain the same, and borrowers will not get any immediate relief.
The RBI’s Monetary Policy Committee has maintained a neutral stance, meaning interest rates could be increased or reduced in the future if needed. The Governor said the trade deal with the United States is expected to boost India’s exports.
The RBI also kept other key rates unchanged. The Standing Deposit Facility (SDF) remains at 5 percent, and the Marginal Standing Facility (MSF) stays at 5.50 percent. The Governor said India continues to attract foreign investment and that the economy is in a strong position. The RBI expects GDP growth of 7.4 percent.
On inflation, the RBI said price levels remain under control. Retail inflation has risen slightly from 2 percent to 2.1 percent in FY 2026. Inflation forecasts for upcoming quarters have been revised slightly higher.
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