Why RBI kept repo rate unchanged at 5.25% despite inflation concerns

The Reserve Bank of India's Monetary Policy Committee kept the repo rate unchanged at 5.25% amid global economic uncertainties, particularly due to the conflict in West Asia and rising crude oil prices. The committee also raised its FY27 GDP growth projection to 6.7% and lowered the inflation forecast to 5%. This decision ensures stability in interest rates for loans and deposits, maintaining current equated monthly instalments and returns for borrowers and savers.

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