RBI Keeps Repo Rate Unchanged

The Reserve Bank of India (RBI) has once again decided to keep the country's key policy interest rates unchanged. Announcing the outcome of the latest Monetary Policy Committee (MPC) meeting on Wednesday, RBI Governor Sanjay Malhotra confirmed that the repo rate will remain at 5.25%. This marks the fourth consecutive policy review in which the central bank has maintained the status quo on interest rates.

The RBI had also left interest rates unchanged during its policy reviews held in February, April, and June this year. However, the central bank had adopted an accommodative approach last year, reducing the repo rate on multiple occasions. It cut the benchmark rate by 25 basis points each in February and April, followed by a 50-basis-point reduction in June and another 25-basis-point cut in December. As a result, the repo rate declined by a cumulative 1.25 percentage points over the year.