Monetary Policy Decision
The Reserve Bank of India maintains the repo rate at 6.5% while focusing on managing inflation pressures and supporting economic growth amid global economic uncertainties and domestic demand considerations.
Rate Decision
MPC outcome:
December Policy
| Rate | Level |
|---|---|
| Repo rate | 6.5% |
| Standing deposit | 6.25% |
| Marginal standing | 6.75% |
| CRR | Adjusted |
MPC Vote
Committee decision:
Voting Pattern
| Decision | Votes |
|---|---|
| Hold | Majority |
| Cut | Minority |
| Stance | Neutral |
Inflation Focus
Price stability priority:
Inflation Data
| Metric | Level |
|---|---|
| Headline CPI | ~5.5% |
| Core | Moderating |
| Food | Elevated |
| Target | 4% (±2%) |
Food Inflation
Persistent concern:
Drivers
| Item | Pressure |
|---|---|
| Vegetables | Volatile |
| Pulses | Elevated |
| Edible oils | Import dependent |
| Cereals | Managed |
Growth Outlook
Economic assessment:
RBI Projection
| Indicator | Forecast |
|---|---|
| GDP FY25 | ~6.6% |
| GDP FY26 | Positive |
| Outlook | Resilient |
Global Factors
External considerations:
International Environment
| Factor | Impact |
|---|---|
| Fed policy | Rate path |
| Oil prices | Import bill |
| Geopolitics | Uncertainty |
| Dollar | Rupee pressure |
Rupee Management
Currency dynamics:
Exchange Rate
| Factor | Status |
|---|---|
| Rupee level | Managed |
| Intervention | Active |
| Reserves | $700+ billion |
| Volatility | Contained |
Liquidity Management
Banking system liquidity:
Measures
| Action | Purpose |
|---|---|
| OMOs | Liquidity injection |
| VRR | Fine-tuning |
| CRR cut | System liquidity |
Governor Statement
Das's key messages:
Key Points
- Inflation focus remains
- Growth supportive stance
- Data-dependent approach
- Stable rupee priority
- Financial stability maintained
Banking Sector
Financial system assessment:
Health Indicators
| Metric | Status |
|---|---|
| NPAs | Declining |
| Capital | Adequate |
| Credit growth | Healthy |
| Deposits | Growing |
Looking Forward
Policy trajectory:
Expectations
- Rate cuts when inflation moderates
- Data-dependent decisions
- Food inflation monitoring
- Growth support balance
- Global coordination
The RBI's cautious stance reflects the delicate balance between controlling inflation and supporting economic momentum.
