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

The article explains the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decision to keep the key policy repo rate unchanged at 5.25%. This decision was primarily driven by global economic uncertainties, including the West Asia conflict and rising international crude oil prices, which pose inflationary risks for India. The MPC aimed to balance supporting economic growth with controlling inflation, marginally increasing the growth projection to 6.7% while reducing the inflation forecast to 5% for FY27. The unchanged repo rate means stability for interest rates on loans and deposits, keeping EMIs steady.