The Reserve Bank of India (RBI) on Wednesday kept the benchmark repo rate unchanged at 5.25% for the fourth consecutive monetary policy review, while retaining its neutral policy stance, as it balanced inflationary risks with the need to support economic growth.
In his policy statement, RBI Governor Sanjay Malhotra said geopolitical tensions in West Asia continue to weigh on the global economy by disrupting trade routes, affecting supply chains and increasing market volatility. While inflation has edged higher, the central bank noted that price pressures are not broad-based, giving it some room to maintain the status quo while remaining watchful of evolving growth-inflation dynamics.
