RBI maintains Repurchase Rate at 5.25%, as expected, via unanimous decision and maintains neutral policy stance

• 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.

The Reserve Bank of India (RBI) has kept the repurchase rate steady at 5.25%, aligning with expectations, and has adopted a neutral policy stance. This implies stability in the current monetary approach despite external pressures, suggesting that while inflation is under control, geopolitical uncertainties could pose risks. The forecast for CPI inflation indicates a marginal increase, yet the overall economic outlook remains steady with measures aimed at enhancing credit flow likely to support urban consumption.