Daijiworld Media Network - Mumbai

Mumbai, Feb 6: As widely anticipated, the Reserve Bank of India-led Monetary Policy Committee (MPC) on Friday unanimously decided to keep the key policy repo rate unchanged at 5.25 per cent, citing emerging global uncertainties and sustained strength in domestic economic growth.

The committee also retained its existing monetary policy stance, choosing to conserve its policy ammunition for future use. This marks the fourth consecutive MPC meeting where rates have been left unchanged, following a series of repo rate cuts over the past year.

The MPC had reduced the repo rate four times earlier — by 25 basis points each in February and April, followed by an unconventional 50 basis point cut in June, and another 25 basis point reduction in the December 2025 review. These cumulative cuts amounted to 125 basis points, bringing the repo rate down to the current level of 5.25 per cent.

Many observers tracking developments at Mint Road believe the present repo rate could be the terminal rate for the medium term, unless upcoming economic data warrant further policy action in either direction.

The MPC noted that while domestic growth remains robust, uncertainties on the external front continue to pose risks, warranting a cautious and calibrated approach to monetary policy.