The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25% for the third consecutive monetary policy meeting, in line with market expectations, citing uncertainties arising from the ongoing West Asia conflict, volatile energy prices, and potential supply chain disruptions.

Announcing the third bi-monthly monetary policy of FY27, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously voted to maintain the policy rate while retaining its neutral stance.

The decision comes despite retail inflation, measured by the Consumer Price Index (CPI), rising to 4.38% in June, above the RBI's medium-term target of 4%, reflecting the central bank's cautious approach amid evolving global and domestic economic conditions.