RBI Holds Repo Rate At 5.25%, Keeps Neutral Stance

The RBI is the central bank of India.

It decides how much interest banks pay when they borrow money from it, called the repo rate.

The RBI decided to keep that rate at 5.25 percent.

That means borrowing costs stay the same, which is good news for homebuyers and businesses.

The RBI also expects India's economy to grow faster next year, at 6.7 percent.

It also expects prices of things to rise more slowly, at 5.0 percent.

Experts say the decision balances economic growth with stable prices.

Some experts warn that if oil prices go up or the Indian currency weakens, the RBI may raise rates later.