In its final bi-monthly review for the 2025-26 fiscal year, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) today kept the benchmark repo rate unchanged at 5.25%. 

Governor Sanjay Malhotra, leading the six-member panel, announced that the MPC voted unanimously to maintain the status quo. The MPC also decided to continue with the neutral stance.

“Amidst heightened geo-political tensions and elevated uncertainty, the Indian economy is in a good spot with strong growth and low inflation” the governor said.

“With the signing of a landmark trade deal with the European Union and the US trade agreement in sight, growth momentum is likely to be sustained for a longer period,” he added.

What does this mean for your FD returns?

With the repo rate unchanged, FD interest rates will remain stable, with limited scope for hikes.

Growth

The central bank has upgraded its FY26 Real GDP growth projection to 7.4% as the Indian economy continues on a steadily improving trajectory, amid global headwinds.

Retail Inflation

The RBI expects an increase in retail inflation, for financial year 2025-26 at 2.1%, from 2% earlier. CPI inflation for the first two quarters of financial year 2026-27 are expected to be at 4.0% and 4.2% respectively.  The upward revision in inflation outlook is primarily due to an increase in prices of precious metals, which contribute about 60-70 basis points.

At 01:00 PM, Nifty Private Bank was trading in the green.