The Monetary Policy Committee (MPC) of the Reserve Bank of India maintained a status quo on the repo rate in its policy announcement on Friday and retained interest rate at 5.25 per cent. This comes amid continued global economic uncertainty, pressure on government bond yields and volatility in the domestic currency.
Governor Malhotra said the Indian economy remains resilient, adding that domestic inflation and growth outlook remain positive. He further stated that the MPC decided to maintain a neutral stance.
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Announcing the policy decision, the Governor said the MPC arrived at the decision after a detailed assessment of evolving macroeconomic conditions and the overall economic outlook.
The governor said, "Since the last policy meeting, external headwinds have intensified. Though the successful completion of trade deals augurs well for the economic outlook. Overall, the near-term domestic inflation and growth outlook remain positive."
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The RBI Governor said that external headwinds have intensified since the last policy meeting. At the same time, he noted that the successful completion of recent trade deals augurs well for the economic outlook. Overall, he said, the near-term domestic inflation and growth outlook remains positive.
With the repo rate unchanged, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.
(With Agency Inputs)