Mumbai: In a widely anticipated move, the Reserve Bank of India (RBI) decided on Wednesday to maintain its key repo rate at 5.50%, signaling a cautious stance while assessing the effects of earlier monetary easing and recent tax reductions. The six-member Monetary Policy Committee (MPC) voted unanimously to keep the rate unchanged and opted to continue with a "neutral" policy approach. Analysts had expected the hold, citing both subdued inflation and persistent global trade uncertainties.

RBI Governor Sanjay Malhotra emphasized the importance of a "wait and watch" strategy, noting that prior rate cuts and tax reductions are expected to bolster domestic demand. However, he warned that punitive tariffs imposed by the United States on Indian exports could weigh on trade performance. The ce

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