RBI holds interest rate at 5.5%, switches to 'neutral' stance
The Reserve Bank of India just kept its main interest rate steady at 5.5%, hitting pause after three straight cuts earlier this year.
They've also switched their policy stance from "accommodative" to "neutral"—basically, they're taking a wait-and-watch approach now.
RBI's growth and inflation projections
RBI still expects the economy to grow by 6.5% in FY25, with quarterly numbers unchanged too.
Inflation dropped to 2.1% in June, which gives RBI some breathing space—but global uncertainty (like US tariffs on Indian goods) means they're staying cautious.
Governor Sanjay Malhotra indicated that after all those recent cuts, there's not much room left for more.
Why you should care about RBI's rate decision
Interest rates affect everything from your student loans to job prospects and startup funding—so when RBI holds steady and signals caution, it's worth paying attention.
Their neutral stance means they're keeping an eye on inflation and global trends before making any big moves next.
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