RBI Maintains 6.5% Repo Rate, Focuses on Economic Stability

The Reserve Bank of India (RBI) has maintained the repo rate at 6.5%, marking the eighth consecutive review since February 2023 without changes. This steady stance represents the second-longest period of rate stability in the past 25 years, reflecting the RBI's commitment to a stable economic environment.

RBI's decision to keep the repo rate unchanged demonstrates a balanced approach to nurturing economic stability and growth. By prioritizing price stability and supporting investment, RBI aims to create a resilient economic environment capable of sustaining growth and withstanding external shocks. This prudent policy stance is expected to bolster investor confidence and contribute to India's economic resilience in the coming year.

However, RBI is aware of potential risks. Geopolitical tensions, volatility in international financial markets, and geo-economic fragmentation pose significant challenges. The central bank's cautious stance reflects its readiness to navigate these uncertainties and mitigate any downside risks.