MUMBAI: The Reserve Bank on Friday expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis.
The policy decision comes amid a three-month long conflict in West Asia that has disrupted energy supplies, leading to a surge in crude oil prices, and created fiscal and inflationary pressures for import-dependent countries like India.
Announcing the second bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.