India keeps key rate steady after US trade deal boosts outlook.

The Reserve Bank of India left the repurchase rate at 5.25% after a unanimous six-member MPC vote and kept a neutral policy stance; higher government spending and a US tariff cut on Indian goods were cited as supporting the growth outlook.

The Reserve Bank of India kept its repurchase rate unchanged on Friday, with the six-member Monetary Policy Committee voting unanimously to retain the rate at 5.25% and the policy stance at neutral. Officials and analysts cited higher government spending in the budget and a surprise US announcement on tariff cuts as factors that have improved the outlook for growth. The rupee has moved from being one of Asia's weakest currencies in January to a top performer this month. Inflation has remained well below the RBI's 4% target in recent months, and the central bank has cut rates over the past year. Key developments: - The RBI's six-member Monetary Policy Committee voted unanimously to keep the repurchase rate at 5.25%. - The policy stance was retained at neutral. - The government increased budget spending and US President Donald Trump announced cuts to tariffs on Indian goods (reported as a move from 50% to 18%), which lifted growth expectations. - The rupee rebounded from January weakness to become one of the region's top gainers this month. - The RBI has reduced interest rates by a cumulative 125 basis points since February last year, and consumer price growth has stayed below 2% for the last four months. - The government projects the economy could expand more than 7% in the financial year starting April 1, versus an estimated 7.4% for the current year. Summary: The RBI's decision keeps monetary policy unchanged while outside factors — higher fiscal spending and a reported US tariff cut — have strengthened the near-term growth outlook and supported the rupee. Undetermined at this time.