RBI MPC Decision: Dalal Street Struggles For Direction After Status Quo On Repo Rate

Equity markets initially reacted with enthusiasm on June 5 after the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25 per cent and retained its neutral policy stance, in line with market expectations. However, sentiment quickly reversed, and within a short span, sharp selling pressure emerged, leading to a volatile session as stocks swung between gains and losses.

All six members of the Monetary Policy Committee (MPC) voted unanimously to keep the rate unchanged, signalling policy continuity. The decision to maintain status quo comes as central bank continues to weigh inflation risks against concerns of slowing growth and persistent pressure on the rupee.