New Delhi: The Reserve Bank of India (RBI) has decided to press the pause button on interest rates, keeping the repo rate unchanged at 5.25 per cent, offering short-term stability to borrowers across the country. With this decision, interest rates on home, vehicle and personal loans are expected to remain unchanged for at least the next two months.
Announcing the decision after the three-day meeting of the Monetary Policy Committee (MPC), RBI Governor Sanjay Malhotra said the six-member panel unanimously voted to maintain the current rates while continuing with a neutral policy stance. Since February 2025, the central bank has already cut interest rates by a cumulative 1.25 percentage points across four MPC meetings, balancing growth support with inflation control.
The RBI has also revised its economic outlook, raising both inflation and GDP growth projections. Inflation for the first quarter of the next financial year (March–May 2026) is now pegged at 4 per cent, up from the earlier estimate of 3.9 per cent, and is expected to rise to 4.2 per cent in the following quarter. For the current financial year ending next month, retail inflation is projected at 2.1 per cent, with the ongoing quarter at 3.2 per cent. The next MPC meeting is scheduled for April, where further policy action will depend on evolving economic conditions.
