NEW DELHI: The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, maintaining its current monetary policy stance amid evolving domestic and global economic conditions.

Announcing the decision after the latest meeting of the Monetary Policy Committee (MPC), the central bank emphasized the need to balance inflation control with sustaining economic growth. The move was widely anticipated by market participants, who expected a pause following earlier policy adjustments.

The RBI noted that inflation has shown signs of moderation but continues to remain sensitive to food price volatility and external uncertainties. At the same time, economic activity in India has remained resilient, supported by strong domestic demand and steady investment trends.

Governor Shaktikanta Das stated that the central bank will remain vigilant and data-dependent in its future policy decisions. “The MPC will continue to closely monitor inflation dynamics and growth indicators to ensure macroeconomic stability,” he said.

By holding the repo rate steady, the RBI aims to provide policy continuity while assessing the lagged impact of previous rate changes. The decision is expected to offer some relief to borrowers, as lending rates are likely to remain stable in the near term.

Financial markets reacted calmly to the announcement, with analysts viewing the move as a signal of the RBI’s cautious and balanced approach.

The central bank reiterated its commitment to keeping inflation within its target range while supporting sustainable growth, leaving the door open for future policy adjustments depending on incoming data.