Kathmandu. The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25 percent in the first bi-monthly monetary policy review of the current financial year. RBI Governor Sanjay Malhotra has unanimously decided to keep the repo rate unchanged at 5.25 percent and keep the monetary policy form ‘neutral’. <\/p>\n<\/p>\n
The repo rate has remained unchanged at 5 percent while the Standing Deposit Facility (SDF) rate has been kept at 5 percent, while the Marginal Standing Facility (MSF) rate and Bank Rate have been kept at 5.50 percent.<\/p>\n
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The meeting of the Monetary Policy Committee (MPC) under the chairmanship of Governor Malhotra began on Monday.<\/p>\n
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The RBI has projected India’s economic growth rate to be 7.6 percent in the last financial year. In the current financial year, the economic growth is projected to be 6.9 percent. Similarly, the RBI expects the Consumer Price Index (CPI) based inflation to be 4.6 percent for the current financial year.<\/p>\n
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Malhotra said the continued high energy prices due to the ongoing conflict in the Middle East and a possible El Ni\u00f1o scenario could put upward pressure on inflation.<\/p>\n
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On the West Asia conflict, the RBI has adopted a ‘wait and see’ policy of closely monitoring the situation rather than reaching any immediate conclusions. The Monetary Policy Committee has kept the policy rate unchanged after assessing the potential impact of economic growth and inflation with the changing situation. <\/p>\n<\/p>\n
According to Governor Malhotra, the West Asia conflict may adversely affect the growth of the Indian economy. He said that the increase in energy prices, as well as international transportation and insurance costs, may put pressure on the cost of production and disrupt the supply chain. This could affect economic growth by affecting the availability of essential raw materials and other materials in various sectors, the RBI said. <\/p>\n<\/p>\n
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Governor Malhotra has said that the fundamentals of the Indian economy are now stronger than ever. He said that this has increased India’s ability to withstand external shocks. <\/p>\n<\/p>\n
He said the various steps taken by the government to support exports and secure supply chains would help mitigate the adverse impact of the West Asia conflict to some extent.<\/p>\n
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The RBI Governor noted that the Indian rupee depreciated more in the financial year 2025-26 than the previous year’s average despite having a strong macroeconomic base. <\/p>\n<\/p>\n
He clarified that there is no change in India’s exchange rate policy. He said that the RBI’s intervention in the foreign exchange market is focused on controlling excessive and volatile fluctuations and not to maintain a certain level or range of the exchange rate. <\/p>\n<\/p>\n
Malhotra said that this arrangement is fully in line with India’s long-term policy to be determined by the exchange rate market. The RBI has also reiterated its commitment to judiciously control excessive or disruptive fluctuations that are not justified by the underlying economic conditions. <\/p>\n<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25 percent in the first bi-monthly monetary policy review of the current financial year. RBI Governor Sanjay Malhotra has unanimously decided to keep the repo rate unchanged at 5.25 percent and keep the monetary policy form ‘neutral’. The repo […]<\/p>\n","protected":false},"author":1,"featured_media":34689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,102,123,126,129,147],"tags":[],"class_list":["post-38895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-en","category-international-en","category-banking-update-en","category-banking-news-en","category-special-en","category-news-en"],"acf":[],"jetpack_featured_media_url":"https:\/\/english.bankingsansar.com\/wp-content\/uploads\/2026\/08\/Sanjay-Malhotra.jpg","publishedDateNp":"\u0968\u096a \u092d\u093e\u0926\u094d\u0930 \u0968\u0966\u096e\u0969, \u092c\u0941\u0927\u092c\u093e\u0930 \u0967\u096e:\u0967\u0968","_links":{"self":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/38895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/comments?post=38895"}],"version-history":[{"count":1,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/38895\/revisions"}],"predecessor-version":[{"id":38896,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/38895\/revisions\/38896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/media\/34689"}],"wp:attachment":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/media?parent=38895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/categories?post=38895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/tags?post=38895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}