RBI MPC Holds Repo Rate at 5.25%, Governor Malhotra Cites Net Borrowing Focus

• RBI's Monetary Policy Committee (MPC) unanimously kept the policy repo rate unchanged at 5.25% in its February review.
• Governor Sanjay Malhotra stated that inflation remains below the tolerance band and high-frequency indicators show strong growth momentum.
• Landmark trade deals with the EU and US are expected to support sustained growth.
• Malhotra highlighted escalating geopolitical tensions and cautious domestic bond market sentiments due to fiscal sustainability concerns.
• MPC expects CPI inflation in Q1 and Q2 of FY27 to remain benign at 4% and 4.2%, respectively.