In line with market expectations, RBI Governor Sanjay Malhotra kept the repo rate unchanged at 5.25 per cent. The decision, taken unanimously, comes after the six-member monetary policy committee held deliberations for two days.
Significantly, the repo rate announcement comes hours after US President Donald Trump announced a "double-sided ceasefire" with Iran. The two-week truce triggered a rally in global markets. Indian benchmark indices also witnessed a gap-up opening.
The monetary policy committee, chaired by the RBI Governor, meets every two months to review key economic indicators and determine the policy stance. The central bank kept the rate unchanged in the August, October and February 2026 monetary policies.
Rationale Behind Repo Rate Decision
- Inflation remains contained but there's upside risk
- Risks of food prices rising due to weather disturbances
- Prudent to wait and watch in such scenario
- High crude prices may widen current account deficit
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