Repo Rate
Big call from RBI: Repo rate stays at 5.25%, neutral stance continues
Mumbai/IBNS: The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 5.25 per cent following the Monetary Policy Committee (MPC) meeting.
The standing deposit facility (SDF) rate remains at 5 per cent, while the marginal standing facility (MSF) rate and the Bank Rate continue at 5.50 per cent. The MPC also decided to maintain its neutral policy stance.
The meeting was held under the chairmanship of RBI Governor Sanjay Malhotra from February 4 to 6.
The central bank said real gross domestic product (GDP), as per the First Advance Estimates (FAE), is projected to grow at 7.4 per cent year-on-year in 2025–26.
“Private consumption and fixed investment contributed significantly to overall growth. Net external demand, however, remained a drag, with imports outpacing exports. On the supply side, real GVA growth of 7.3 per cent is driven by a buoyant services sector, a resilient agricultural sector and a revival in manufacturing activity,” the RBI said in its statement.
Headline consumer price index (CPI) inflation remained low at 0.7 per cent in November and 1.3 per cent in December 2025.
While the food group continued to remain in deflation, inflation in the fuel group stayed moderate during November and December. Core inflation (CPI excluding food and fuel) also remained benign despite a pick-up in prices of precious metals. Excluding gold, core inflation stood stable at 2.6 per cent in December.
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