RBI Holds Interest Rates Steady Amidst US Trade Deal Boost and Easing Inflation

• The Reserve Bank of India (RBI) unanimously kept the repo rate unchanged at 5.25% and maintained a neutral policy stance.
• The decision was influenced by manageable inflation, eased growth concerns due to increased government spending, and reduced tariff pressures following a US trade deal.
• US President Donald Trump announced a cut in tariffs on Indian goods from 50% to 18%, positively impacting India's economy.
• RBI Governor Sanjay Malhotra highlighted that despite external headwinds, the Indian economy is in a good position with strong growth and low inflation.
• Additional measures include new guidelines for mis-selling and loan recovery, a framework for customer compensation in fraudulent transactions, and doubling collateral-free loans for MSMEs to Rs 20 lakh.