The Reserve Bank of India has maintained its policy rate at 5.25 percent with a neutral stance while introducing steps to attract foreign capital.
The central bank unveiled incentives for external commercial borrowings and will bear hedging costs on FCNR(B) deposits. These actions seek to bolster external buffers and support the rupee amid market outflows. Officials also revised inflation and growth forecasts as part of the policy announcement. The moves come as the bank works to strengthen foreign currency inflows. The decision leaves the repo rate unchanged from previous levels while shifting focus to currency stability measures.
