Reserve Bank of India Holds Repo Rate at 5.25 Percent, Cuts Growth Forecast

Reserve Bank of India kept the repo rate unchanged at 5.25% during its latest Monetary Policy Committee meeting, emphasizing a cautious approach as global economic uncertainty persists and domestic credit growth remains moderate.

Monetary Policy Committee lowered its near‑term GDP growth projection, cutting the forecast for the current fiscal year by several percentage points, citing weaker consumption, slower investment and external headwinds that could dampen momentum.

Inflation figures released by the RBI showed a modest decline in consumer price inflation, allowing policymakers to maintain the status quo on rates while keeping a close watch on credit expansion, food price volatility, and imported inflation pressures.

Economists predict that the unchanged repo rate will keep borrowing costs stable for businesses and households, but warn that the reduced growth outlook may prompt a tighter stance later if inflationary pressures re‑emerge or external shocks intensify.