RBI maintains Repurchase Rate at 5.25%, as expected, via unanimous decision and maintains neutral policy stance
Importance
Level 1
Says:
- Standing Deposit Facility Rate maintained at 5%, Marginal Lending Facility and Bank Rate are kept at 5.50%.
- Indian economy is on a steady and improving trajectory.
- External headwinds intensified since the last meeting.
- Current policy rate is appropriate, underlying inflation remains low.
- Net external demand remains a drag.
- Rural demand remains steady.
- Recovery in urban consumption is to strengthen.
- Excluding gold, core inflation remains stable.
- Geopolitical uncertainties pose upside risks to inflation.
- FY26 CPI inflation seen at 2.1% (prev. 2.0%)
- Announces several measures to enhance credit flow, among others.
- RBI proposes to allow banks to lend a REITs with some prudential safeguards.
- Proposes to remove tenor and moratorium-related requirements on housing loans for Tier 2 and Tier 3.
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