India’s central bank maintains repo rate at 5.25% for a fourth meeting, while $41 billion inflows fail to lift the rupee sustainably.
The Reserve Bank of India left its benchmark repo rate unchanged at 5.25% for a fourth consecutive meeting, aligning with market expectations. The decision follows a period of steady policy, with the central bank prioritizing inflation control amid global economic uncertainty.
India attracted $41 billion in inflows, providing temporary support for the rupee, which eased to around 95.10 against the USD. However, analysts note persistent pressure on the INR due to broader dollar strength and external account vulnerabilities.
The RBI’s stance remains cautious, balancing growth objectives with inflation risks, though no immediate market reaction was reported.