RBI MPC keeps policy repo rate unchanged at 5.25%
The Reserve Bank’s Monetary Policy Committee kept the policy repo rate unchanged at 5.25%. The MPC observed that the higher inflation was mostly on account of fuel and food, with little sign so far of price pressures becoming generalised across the economy, supporting its decision to hold rates steady.
Nabka Insight
The repo rate decision and the MPC’s inflation reading are core banking-exam material.
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- Policy repo rate held at 5.25%.
- Decision taken by the Monetary Policy Committee (MPC).
- Higher inflation attributed mainly to fuel and food.
- No generalised price pressure seen yet.
Background
Relevant forBanking · SSC · State PSC · UPSC