RBI keeps Repurchase Rate unchanged at 5.25%, as expected, via unanimous decision, while policy stance kept at neutral

RBI Governor Malhotra says:

• Marginal Lending Facility Rate and Bank Rate kept at 5.50%, Standing Deposit Facility Rate kept at 5.00%
• Monetary policy has turned more cautious.
• Over the past few months, the global economy has been shaped by uncertainty.
• Indian economy entered episode of global turbulence with much fundamentals than previous episodes.
• Remain confident of withstanding shocks with minimum pain, and it's important to confront and address these challenges.
• Advanced economy central banks are likely to pivot to policy tightening.
• Considerable risks to inflation and growth.
• Domestic demand remains resilient, however, elevated energy prices and supply constraints are having an adverse impact on economic activity.
• Impact of supply shock will weigh in from Q4 onwards.
• Food price outlook remains uncertain.
• Prudent to wait for greater clarity to emerge.
• Risks of higher inflation have been amplified.
• RBI will remain data dependent and will closely monitor supply-side pressures.
• Lower FY27 real GDP growth forecast to 6.6% from 6.9%.
• Raises FY27 CPI inflation forecast to 5.1% from 4.6%.
• Various policy initiatives over recent months are expected to strengthen balance of payments.
• Few measures to announce on foreign capital.
• To introduce 40-year tenor G-Secs.
• Limits for short term investment and concentration on FPI investments under general route being removed.
• India scraps capital gains tax on foreign investors in government debt.
• RBI Governor announces plan to roll out scheme for FX deposits from overseas Indians.
• Exchange rate policy is unchanged.