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RBI Policy Pause Expected: Repo Rate Held at 5.25%

14 March 20261 min read
ECONOMYRBI Policy PauseExpected: RepoRate Held at 5.25%14 March 2026safalsetu.com

Why in the news

Analysts think RBI will not move rates soon as global tension and uncertain conditions call for caution.

Key facts

  • Repo rate: 5.25% after the February 2026 review.
  • Stance: neutral.
  • Expectation: no change at the coming review.

Why a pause

  1. Geopolitics: oil moved from roughly $120 to nearly $81 per barrel.
  2. The shock hits supply chains and energy, not demand, so a hike might slow growth without curing inflation.
  3. Oil-led inflation risk must be balanced with growth support.

Liquidity steps

MeasureDetail
OMO done₹50,000 crore, March 9
OMO plannedAnother ₹50,000 crore purchase

Drains came from forex intervention, maturing FX forwards, advance tax and GST outflows.

Exam angle

  • Repo rate: 5.25%; tool: Open Market Operations.

Test yourself

1. What was the repo rate after RBI's February 2026 monetary policy review?

RBI kept the repo rate unchanged at 5.25%.

2. RBI's policy stance in the February 2026 review was described as what?

The notes record a neutral stance.

3. How large was the OMO purchase RBI conducted on March 9?

RBI conducted OMO worth ₹50,000 crore and scheduled another of the same size.

This topic is part of Daily Current Affairs 12 & 13 & 14 March 2026 (28 topics).

All topics of the dayDay quizMarch 2026

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