RBI keeps Repurchase Rate unchanged at 5.25%, as expected, via unanimous decision, while policy stance kept at neutral

RBI Governor Malhotra says: Marginal Lending Facility Rate and Bank Rate kept at 5.50%, Standing Deposit Facility Rate kept at 5.00% Monetary policy has turned more cautious. Over the past few months, the global economy has been shaped by uncertainty. Indian economy entered episode of global turbulence with much fundamentals than previous episodes. Remain confident of withstanding shocks with minimum pain, and it's important to confront and address these challenges. Advanced economy central banks are likely to pivot to policy tightening. Considerable risks to inflation and growth. Domestic demand remains resilient, however, elevated energy prices and supply constraints are having an adverse impact on economic activity. Impact of supply shock will weigh in from Q4 onwards. Food price outlook remains uncertain. Prudent to wait for greater clarity to emerge. Risks of higher inflation have been amplified. RBI will remain data dependent and will closely monitor supply-side pressures. Lower FY27 real GDP growth forecast to 6.6% from 6.9%. Raises FY27 CPI inflation forecast to 5.1% from 4.6%. Various policy initiatives over recent months are expected to strengthen balance of payments. Few measures to announce on foreign capital. To introduce 40-year tenor G-Secs. Limits for short term investment and concentration on FPI investments under general route being removed. India scraps capital gains tax on foreign investors in government debt. RBI Governor announces plan to roll out scheme for FX deposits from overseas Indians. Exchange rate policy is unchanged.