The Reserve Bank of India’s rate-setting panel continued with status quo on the repo rate in the backdrop of retail inflation being well below the target and growth gathering momentum.

The six-member monetary policy committee (MPC) also decided to continue with the neutral stance. Both these decisions were unanimous.

So, the repo rate, which has been cut by 100 basis points (bps) since February 2025, continues at 5.50 per cent. Repo rate is the interest rate at which banks draw funds from RBI to overcome short-term liquidity mismatches.

Governor Sanjay Malhotra said overall inflation outlook has turned even more benign due to sharp decline in food prices and GST rate rationalisation even as he emphasised that growth continues to be below the central bank’s aspirations.

He observed that

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