RBI holds repo rate at 5.25%, keeps neutral stance as inflation rises
The RBI left the repo rate unchanged for a fourth meeting and retained its neutral stance for a seventh. June CPI inflation rose to 4.4% from 3.9% in May, signalling potential pressure on discretionary consumer demand and retail costs from food, fuel and currency risks.
RBI held the repo rate at 5.25% and retained its neutral stance as inflation rose to 4.4% in June. Food, fuel, crude prices, rupee depreciation and monsoon risks could pressure consumer demand and retail operating costs.
Why this matters
The decision extends RBI's prior 5.25% holds that kept retail borrowing costs and outlook steady, while its August policy guidance signal flagged possible resets to pricing, demand and borrowing.
Footfall is steady, with 585 signals recorded in the past 90 days.
Also reported by
- The Hindu BusinessLine — Same time