RBI MPC keeps repo rate unchanged at 5.25%, maintains 'neutral' stance

RBI MPC June meeting: In its policy meeting, which took place between June 3-5, the committee continued with the 'neutral' stance

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Friday kept the repo rate unchanged at 5.25 per cent. RBI Governor Sanjay Malhotra announced the decision after the policy meeting. 

At its policy meeting, held between June 3 and 5, the committee maintained its 'neutral' stance. The standing deposit facility (SDF) rate was kept at 5 per cent. The marginal standing facility (MSF) rate and the bank rate were both set at 5.5 per cent. 

On the global economic environment, Malhotra said uncertainty persists due to the ongoing conflict in West Asia. "Over the past few months, the global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment," he said.    

 

 

The RBI Governor further noted that India is better positioned to deal with the current global challenges compared to previous episodes of external shocks. He expressed confidence in the economy's ability to absorb these pressures with limited impact.

RBI MPC: Growth outlook

The RBI Governor said that the real GDP growth for FY27 is projected at 6.6 per cent.