The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.5% as the rupee continues to weaken under pressure from renewed US tariff threats, NDTV reported. The Indian currency dropped by 16 paise yesterday following fresh warnings from US President Donald Trump of potential tariff hikes on Indian exports.

The decision was announced at the Monetary Policy Committee (MPC) meeting held this morning. The MPC convenes every two months to shape the central bank’s financial strategy. In its previous meeting in June, the RBI had reduced the key policy rate by 50 basis points, aligning with easing inflation trends.

The central bank has opted to maintain its neutral stance, citing ongoing uncertainty around global trade developments and the gradual transmission of earlier rate adjustments. According to NDTV, the MPC stated that it would continue to monitor evolving economic indicators closely.

The RBI highlighted persistent uncertainty in external demand due to ongoing tariff announcements and trade negotiations. Prolonged geopolitical tensions were also identified as significant risks to the broader growth outlook.

Despite these concerns, the RBI has projected India’s real GDP growth for the current fiscal at 6.5%, signalling a positive domestic trajectory. The quarterly growth projections stand at 6.5% for Q1, 6.7% for Q2, 6.6% for Q3, and 6.3% for Q4. The central bank reiterated its commitment to proactive and supportive measures to bolster economic resilience and maintain growth momentum.