Key facts
- RBI MPC kept the repo rate unchanged at 5.25%.
- The committee maintained a neutral stance.
- Risks to growth and inflation were cited due to the West Asia conflict.
- Supply chain pressures were also identified as a risk.
- Future policy decisions will be data-dependent.
The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the benchmark repo rate unchanged at 5.25%, maintaining its neutral stance. This decision aligns with the consensus among economists polled by NDTV Profit, who anticipated no change in the rate. The committee acknowledged considerable risks to both the inflation and growth outlooks, primarily stemming from the ongoing conflict in West Asia and persistent supply chain disruptions. The MPC emphasized that its future policy decisions will be data-dependent, with a continued focus on monitoring evolving economic indicators and supply-side pressures.