RBI Keeps Repo Rate Unchanged at 6.5% | Monetary Policy Highlights

📰 Full Report

In its first Monetary Policy Committee (MPC) meeting for FY 2025–26, the Reserve Bank of India (RBI) announced its decision to keep the repo rate unchanged at 6.50%, maintaining a cautious stance amid global inflationary pressures and geopolitical uncertainty.

🗣️ “The Indian economy is showing resilience, but inflation remains a concern. The stance remains focused on withdrawal of accommodation,” said RBI Governor Shaktikanta Das during the post-policy press conference.

---

📊 Key Highlights of RBI April 2025 Policy

Factor	Current Status
📈 Repo Rate	6.50% (unchanged)
📉 Reverse Repo Rate	3.35%
🧮 GDP Growth Forecast	7.0% for FY 2025–26
🔺 Retail Inflation (CPI)	Estimated at 4.8%
💵 Liquidity	Surplus but being managed via VRRR

---

🧠 What is Repo Rate?

The repo rate is the interest rate at which RBI lends money to commercial banks. A stable repo rate typically means:

• Lower EMIs on home and auto loans.
• Boost to demand-led growth.
• Controlled inflation (if rate hike is avoided).

---

🌐 Why Did RBI Not Hike?

• Global Factors:
  • Ongoing US Fed uncertainty
  • Volatile crude oil prices
  • Middle East tensions impacting trade
• Domestic Factors:
  • Rabi harvest expected to be strong
  • Urban consumption stable, rural demand improving
  • Inflation still not below 4% target zone

“We are threading the needle between supporting growth and controlling inflation,” – RBI Governor Das added.

---

📈 Impact on You and the Markets

• 🏦 No change in EMI for home, car, or education loans.
• 📈 Stock market reacted positively, with Sensex up 350 points post-announcement.
• 🪙 Rupee remained stable, closing at ₹83.12 per USD.
• 🛍️ Banks may keep lending rates unchanged, boosting small businesses and startups.

---

🧮 Experts Speak

“This pause is strategic. With elections around the corner, the RBI is ensuring economic stability without being overly aggressive,”
— Dr. Aditi Nayar, Chief Economist, ICRA

“Growth is visible across sectors. If inflation softens further, a rate cut in late 2025 is possible,”
— Sonal Varma, Chief Economist, Nomura India

---

📌 Conclusion

The RBI’s decision to pause on rate hikes reflects confidence in India’s macroeconomic fundamentals, but also a deep awareness of fragile global cues. The central bank is walking a tightrope — and for now, it’s doing it well.

India continues to shine with a balanced approach, even as the global economy remains unpredictable.