New Delhi: Bringing a sigh of relief to millions of borrowers, the Reserve Bank of India (RBI) has decided to keep key interest rates unchanged, ensuring that EMIs will not rise in the near term.
Announcing its latest monetary policy, the RBI held the repo rate steady at 5.25%, maintaining the rate at which banks borrow funds from the central bank. The decision comes against a backdrop of global uncertainties, including geopolitical tensions involving Iran, rising crude oil prices, and inflation risks linked to the El Niño effect.
The central bank has also kept other key rates unchanged, with the Standing Deposit Facility (SDF) at 5% and the Marginal Standing Facility (MSF) at 5.5%, reflecting a cautious and balanced policy stance.
The RBI’s focus remains on stabilizing the Indian rupee and managing bond yields, while keeping inflation under control. As per the latest data, India’s Consumer Price Index (CPI) inflation stood at 3.21% in February—well within the RBI’s target of 4%.
The Monetary Policy Committee highlighted that the decision was made after carefully assessing both domestic and global economic conditions. Despite challenges such as the West Asian conflict and rising energy costs, India continues to show resilience, with steady growth and relatively low inflation compared to many global economies.
The RBI Governor noted that although March witnessed some adverse trends, the Indian economy remains strong enough to withstand global shocks—making this pause in rate changes a strategic move to support stability and growth.
