RBI Holds Repo Rate at 5.25% Amid Global Uncertainty

The Reserve Bank of India (RBI) has maintained the repo rate at 5.25% for the third consecutive monetary policy meeting. RBI Governor Sanjay Malhotra said the Monetary Policy Committee unanimously decided to retain the rate with a neutral policy stance, citing uncertainty caused by the West Asia crisis, volatile energy prices and supply chain disruptions. While the central bank raised its FY2026-27 GDP growth forecast to 6.7%, it lowered the inflation projection to 5%. The decision also comes amid continued weakness in the Indian rupee, which has depreciated around 7% in 2026, pressured by higher crude oil prices, capital outflows, a widening trade deficit and a stronger US dollar.