The RBI has kept interest rates steady at 5.25 %. Announcing the first bi-monthly monetary policy for the current fiscal year, RBI Governor Sanjay Malhotra said that the Monetary Policy Committee has agreed to maintain the repo rate at 5.25 % with a neutral stance.
RBI reveal First Bi-Monthly Monetary Policy for FY27 today
As a result, the standing deposit facility rate remains at 5 %. The marginal standing facility rate and the Bank Rate stay at 5.50 %. The bi-monthly committee meeting started on Monday under the Governor’s leadership.
The Monetary Policy Committee also expects the GDP for the last financial year to be 7.6 %, while for the current fiscal year, it will be 6.9 %. The RBI has forecasted that CPI inflation for this financial year will be 4.6 %.
Watch West Asia conflict conditions closely before reveal policy
Regarding the West Asia conflict, the RBI is taking a wait-and-see approach, citing changing circumstances and the developing outlook for growth and inflation. Thus, the Monetary Policy Committee voted to keep the policy rate steady while staying alert, closely watching new information and evaluating risks.
The Governor mentioned that the West Asia conflict will negatively affect growth. He added that rising input costs linked to higher energy prices and international freight and insurance costs limit the availability of essential inputs for downstream sectors and impact growth.
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