Introduction:
In its April 2025 monetary policy review, the Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5%, prioritizing inflation control over growth acceleration.
Body:
RBI Governor Shaktikanta Das stated that although economic growth indicators remain positive, inflation — especially food inflation — remains a major concern. The central bank maintained its stance of “withdrawal of accommodation” to contain price rise without derailing growth.
India’s retail inflation in March 2025 stood at 5.2%, slightly above the RBI’s comfort zone. However, GDP projections remain strong, with the RBI forecasting a 6.8% growth rate for FY2025-26.
The unchanged policy rate is expected to impact home loan EMIs, corporate borrowing, and consumer demand. Financial experts say this cautious approach will provide stability in bond markets and currency valuation.
Conclusion:
By keeping the repo rate steady, the RBI is sending a clear message that inflation targeting is still the top priority, even as India’s economy continues to grow steadily.
