The Reserve Bank on Wednesday expectedly kept interest rates unchanged amid hopes of a <a href="https://www.mid-day.com/business/stock-market/article/stock-updates-today-markets-soar-on-ceasefire-cheer-sensex-surges-nearly-4pc-nifty-nears-24k-23624680" rel="nofollow">global recovery</a> on the back of ceasefire in the six-week-long US/Isreal-Iran conflict.
The policy decision comes as a month and a-half-long West Asia conflict has disrupted energy supplies, shot up crude oil prices and created fiscal and inflationary pressures for import-dependent nations like India.
This is the first monetary policy review after the government announced a fresh inflation target for the RBI last month. The government has asked the RBI to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for another five years ending March 2031.
Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.
The rate cut pause comes on the back of the consumer price index (CPI) based headline retail inflation that moved closer to the RBI's medium-term target of 4 per cent at 3.21 per cent in February.
Additionally, the rupee has depreciated by over 4 per cent since the war, which has consequences for pushing up import inflation.
However, the rupee has appreciated by 50 paise to 92.56 against <a href="https://www.mid-day.com/business/business-news/article/us-israel-attack-iran-rupee-slips-10-paise-to-93-against-us-dollar-amid-geopolitical-tensions-23624565" rel="nofollow">US dollar</a> following announcement of the ceasefire by the US and Iran.
Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February, April, and December 2025 and 50 basis points in June amidst easing retail inflation.
India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced.
However, the <a href="https://www.mid-day.com/business/business-news/article/us-israel-attack-iran-rbi-likely-to-hold-repo-rate-at-5-25-per-cent-amid-inflation-and-high-oil-prices-23623809" rel="nofollow">rupee declined</a> to historic low and crossed 95 against a dollar last month making imports costlier, raising fears of rise in inflation. Rupee touched a record low of 95.21 on March 30, 2026.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

The RBI kept the repo rate unchanged at 5.25 percent with a neutral stance, citing inflation risks and global uncertainties despite easing retail inflation

RBI holds repo rate at 5.25 percent amid inflation concerns, global uncertainty

Gold, silver surge up to 6 pc despite Trump ceasefire plan

The RBI kept the repo rate unchanged at 5.25 percent with a neutral stance, citing inflation risks and global uncertainties despite easing retail inflation. The move reflects caution amid volatile crude prices and currency fluctuations

RBI holds repo rate at 5.25 percent amid inflation concerns, global uncertainty

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Home / Business / Business News / Article / RBI holds repo rate at 5.25 percent amid inflation concerns, global uncertainty

RBI holds repo rate at 5.25 percent amid inflation concerns, global uncertainty

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