Lending and deposit rates in the banking system will remain unchanged as the Reserve Bank of India (RBI) on Wednesday kept its key policy rate—the repo rate—steady at 5.5 per cent. The six-member Monetary Policy Committee (MPC) voted unanimously to pause for the second consecutive meeting, while also retaining its “neutral” stance, signalling that interest rates could move in either direction depending on how growth and inflation unfold.

While slashing the inflation projection to 2.6 per cent from 3.1 per cent and raising the growth rate to 6.8 per cent from 6.5 per cent projected earlier, the MPC indicated that the decision comes at a time of steady domestic growth, subdued inflation, and heightened global risks. Escalating trade tariff disputes and H-1B visa tensions with the United S

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