RBI keeps repo rate unchanged at 5.25%, maintains neutral stance amid global policy divergence

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Feb 6 announced that the Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, while continuing with a neutral policy stance.
Announcing the policy decision, the Governor said the MPC arrived at the decision after a detailed assessment of evolving macroeconomic conditions and the overall economic outlook.
The governor said, “Since the last policy meeting, external headwinds have intensified. Though the successful completion of trade deals augurs well for the economic outlook. Overall, the near-term domestic inflation and growth outlook remain positive”.
The RBI Governor said that external headwinds have intensified since the last policy meeting. At the same time, he noted that the successful completion of recent trade deals augurs well for the economic outlook. Overall, he said, the near-term domestic inflation and growth outlook remains positive.
With the repo rate unchanged, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.
The MPC’s decision reflects a careful balancing of domestic economic conditions against global uncertainties. While growth and inflation trends at home remain supportive, the committee remains cautious in view of global developments and changing monetary policy signals from major economies.