The Reserve Bank of India maintains its benchmark rate unchanged for the fourth consecutive meeting, citing stable inflation and robust economic growth.
The Indian Rupee pared early gains against the US Dollar after the Reserve Bank of India (RBI) kept its Repo Rate steady at 5.25%. USD/INR rebounded to near 95.06 after opening sharply lower at 94.80, driven by lower oil prices earlier in the session.
The RBI’s decision marks the fourth consecutive meeting with no change, aligning with expectations. Retail inflation, measured by the Consumer Price Index, stood at 4.4% year-on-year in June, remaining within the central bank’s 2%-6% tolerance band.
RBI Governor Sanjay Malhotra noted volatility in crude oil prices and currencies due to geopolitical tensions but emphasized that India’s economic activity outperformed expectations in Q1 FY27. He also warned of potential inflation risks from higher fuel and food prices.