RBI keeps Repurchase Rate unchanged at 5.25%, as expected, with the decision unanimous and it maintains a neutral stance

Says:

• Standing Deposit Facility rate remains unchanged at 5%, whilst the Marginal Standing Facility rate and the Bank Rate are also retained at 5.5%.
• Safe-haven flows have exerted depreciation pressures on currencies of major economies.
• Global growth faces downside risk.
• India’s economy is on a stronger footing at the current juncture.
• The global economy is facing unprecedented challenges, and before the outbreak of the West Asia conflict, India’s macro fundamentals exuded confidence.
• Upside risk to inflation outlook has risen.
• High-frequency indicators up to February suggest a continuation of strong momentum in economic activity.
• West Asia conflict likely to impede growth.
• Momentum in services sector is to support economic activity and business expectations remain optimistic.
• Raises FY25/26 GDP growth forecasts to 7.6% from 7.4%, while it sees FY26/27 growth at 6.9%.
• Sees FY26/27 CPI at 4.6%.