RBI's Monetary Policy Committee keeps repo rate steady at 5.25% amid global headwinds
The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously voted to maintain the policy repo rate at 5.25% under the liquidity adjustment facility (LAF). Consequently, the standing deposit facility (SDF) rate remains at 5% and the marginal standing facility (MSF) rate and bank rate at 5.5%. RBI Governor Sanjay Malhotra stated that the Indian economy remains resilient despite global headwinds, with steady domestic demand and robust private consumption. While headline inflation is projected to increase due to supply-side pressures, core inflation remains moderate, and the MPC decided to continue with a neutral stance.
Key Points
- The MPC unanimously decided to keep the policy repo rate unchanged at 5.25%.
- Other key rates like SDF, MSF, and bank rate also remain steady.
- The Indian economy shows resilience with steady domestic demand and robust private consumption despite global headwinds.
- Headline inflation is expected to rise due to supply-side pressures, but core inflation is moderate.
- The MPC will continue with a neutral stance.
Exam Facts
- Policy Repo Rate: 5.25%
- Standing Deposit Facility (SDF) Rate: 5%
- Marginal Standing Facility (MSF) Rate & Bank Rate: 5.5%
- RBI Governor: Sanjay Malhotra
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