Mumbai, Aug. 1: The Reserve Bank of India (RBI) has decided to leave the benchmark repo rate unchanged, indicating confidence in the country’s improving inflation trajectory and resilient economic growth.
Announcing the latest monetary policy, the central bank said domestic demand continues to remain healthy despite global uncertainties. Policymakers observed that inflation has moderated in recent months and is expected to remain within the RBI’s tolerance band, allowing room to maintain financial stability.
The Monetary Policy Committee (MPC) highlighted that India’s economic fundamentals remain strong, supported by robust consumption, government capital expenditure, and improving private investment.
The RBI, however, cautioned that geopolitical tensions, volatile commodity prices, and uncertainties in global financial markets continue to pose risks to the growth outlook. It said the central bank would remain vigilant and take appropriate measures if inflationary pressures re-emerge.
Financial markets largely welcomed the decision, with banking and infrastructure stocks witnessing steady investor interest. Economists said the status quo provides businesses with policy certainty while encouraging credit growth across sectors.
The central bank also reaffirmed its commitment to ensuring adequate liquidity in the banking system and maintaining macroeconomic stability as India navigates an uncertain global environment.
