Economic Buzz: RBI keeps repo rate unchanged at 5.25%

RBI governor Sanjay Malhotra-led Monetary Policy Committee (MPC) announced its decision to keep repo rate unchanged at 5.25%. The Reserve Bank of India kept key interest rates unchanged for the third time in a row as it weighed the impact of uncertain energy prices and supply disruptions caused by the ongoing West Asia crisis. Announcing the third bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance. The interest rate pause comes even as the Consumer Price Index (CPI) based headline retail inflation has crossed the RBI's medium-term target of 4 per cent at 4.38 per cent in June.

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