India, June 5 -- Monetary Policy Committee (MPC) has decided to keep policy rate (repo rate) unchanged at 5.25 per cent, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Friday, announcing the decisions of the second bi-monthly policy meeting for FY27 that were held from June 3 to June 5.

Global economy remains clouded amidst unprecedented challenges, RBI Governor Sanjay Malhotra said while listing the decisions, adding that India remains confident to withstand shocks with minimum pain amid heightened global uncertainties.

The repo rate is the interest rate at which the RBI lends money to commercial banks for short-term needs.

Decisions over repo rate are keenly watched as any increase in it makes loans such as home, car, a...