Reserve Bank of India (RBI) Governor Sanjay Malhotra | Photocredit: Hemanshi Kamani
The six -member tariff panel of the RBI hit the brake in its current speed cycle close to the background of growth problems arising from the US that hit a steep rate of 25 percent on Indian export to the US and the value reduction effect on the rupid.
During the meeting, who started and ended on August 4, the members of the Monetary Policy Committee (MPC) voted unanimously to maintain the status quo at the REPO rate with 5.50 percent. The monetary policy position remains “neutral”.
Governor Sanjay Malhotra said that the transfer of monetary policy will continue, even if inflation is expected to rise.
This came even when the CPI inflation headed for the fifth consecutive month in June remained under 4 percent.
Headline inflation, as measured by year-on-year changes in the All-India Consumer Price Index (CPI), fell to 2.1 percent in June 2025 (the lowest since January 2019) of 2.8 percent in May in May
In the current rate reduction cycle so far, the MPC has cumulatively reduced the repo speed with 100 basic points – 25 basic points (BPS) each in the meetings of February and April; 50 BPS in the June meeting.
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Published on August 6, 2025
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