Markets React Positively as Central Bank Maintains Status Quo
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 4.25% in its latest bi-monthly review, marking the fifth consecutive session without a change. RBI Governor emphasized a “balanced approach,” noting that inflation remains within the target range while global economic uncertainties require careful monitoring.
“The domestic economy is showing resilient growth, but it is prudent to maintain our stance to ensure broad-based and sustainable development,” the Governor said during the post-announcement press briefing.
The decision reflects the central bank’s confidence in India’s current economic stability while supporting ongoing recovery without fuelling inflationary pressures. Investors responded positively, with the Sensex and Nifty rising by 0.8% immediately after the announcement, signaling approval of the consistent policy environment.
Alongside the RBI decision, the government has launched the ₹15,000 crore Agri-Infra Fund – Phase II and is fast-tracking development in 50 Smart Cities. These initiatives are expected to strengthen infrastructure, boost employment, and further enhance market sentiment.
Overall, the RBI’s steady policy, combined with government initiatives, suggests cautious optimism about India’s growth trajectory while keeping a watchful eye on inflation and global challenges.