RBI retained Repo Rate at 5.25% and projected GDP growth at 6.9%

RBI retained Repo Rate at 5.25% and projected GDP growth at 6.9%

¨     RBI retained Repo Rate at 5.25% and projected GDP growth at 6.9%.

¨  The repo rate has been retained at 5.25 percent by the Reserve Bank of India under its latest monetary policy decision.

¨  The decision has been taken unanimously by the Monetary Policy Committee under the leadership of Sanjay Malhotra.

¨     A neutral stance has been maintained while keeping policy rates unchanged amid evolving economic conditions.

¨  The standing deposit facility rate has been kept at 5 percent, while the marginal standing facility rate and bank rate remain at 5.50 percent.

¨   GDP growth for the current financial year has been projected at 6.9 percent, while the previous year is estimated at 7.6 percent.

¨  CPI inflation for the current fiscal year has been projected at 4.6 percent, indicating moderate price stability.

¨   Risks to inflation have been highlighted due to elevated global energy prices and possible El Niño conditions.

¨     A wait-and-watch approach has been adopted regarding the West Asia conflict due to its uncertain impact on growth and inflation.

¨    Higher input costs, supply chain disruptions, and increased freight and insurance costs are expected to affect economic activity.

¨ The exchange rate policy has been reiterated as market-determined, with interventions aimed only at controlling excessive volatility.