The RBI MPC today kept the repo rate steady at 5.25% for the third time in a row, with the last adjustment made back in December 2025. FD investors have been struggling with low interest rates and were really hoping for a rate hike to boost their returns. Their optimism was fuelled by rising inflation, which is a key factor that the RBI considers when deciding on repo rate changes.
While the RBI’s decision to continue the pause on the repo rate might have stopped immediate increase in FD rates, it doesn’t mean that a rate hike in the coming MPCs is off the table.
