RBI retains interest rate at 5.25%, check key highlights of Moniteary Policy Committee

The Reserve Bank of India (RBI) on Friday decided to keep the repo rate unchanged at 5.25 per cent. This is the first monetary policy review after Finance Minister Nirmala Sitharaman announced the Budget for the financial year 2026-27. Announcing the sixth and final bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has decided to retain the short-term lending rate or repo rate at 5.25 per cent with a neutral stance.

The rate cut pause comes on the back of the CPI-based headline retail inflation ruling below the 2 per cent lower band mandated by the government for the last four months. The central bank has been tasked by the government to ensure that the consumer price index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.