Repo Rate: The Reserve Bank of India (RBI) has not made any change in the repo rate this time. RBI Governor Sanjay Malhotra on Friday announced keeping the repo rate stable at 5.25 percent. Due to this decision of RBI, loan interest rates will also remain the same and customers will not get any relief. The Monetary Policy Committee of the Reserve Bank of India has maintained its stance at Neutral, that is, RBI is ready to cut or increase interest rates if needed in future. Sanjay Malhotra said that the trade deal with America will give a huge boost to India’s exports.
India’s economy and growth are still in a strong position
Apart from the repo rate, RBI has also made no changes in SDF (Standing Deposit Facility) and MSF (Marginal Standing Facility). SDF has been retained at 5 percent and MSF at 5.50 percent. RBI Governor said that India still remains the preferred destination for FDIs. Regarding the country’s economy, Sanjay Malhotra said that India’s economy and growth are currently in a strong position. RBI said that the country’s real GDP growth is on the path of 7.4 percent.
Inflation still remains within controlled range
Sanjay Malhotra said that inflation in the country still remains within controlled range. The country’s retail inflation rate has increased from 2 percent to 2.1 percent in fiscal year 2026. RBI has increased the inflation estimate for the fourth quarter of the current financial year from 2.9 percent to 3.2 percent. The RBI Governor has increased the inflation forecast for the first quarter of FY 2027 from 3.9 percent to 4 percent. Whereas, the inflation estimate for the second quarter has been increased from 4 percent to 4.2 percent.
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