File photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra attends a press conference after a monetary policy review in Mumbai, India, April 9, 2025 | Photocredit: Francis Mascarenhas
The tariff panel of the Reserve Bank of India continued with status quo about the repo rate in the background of the inflation of the retail trade, far below the goal and growth momentum.
The six -member Monetary Policy Committee (MPC) also decided to continue with the neutral position. Both decisions were unanimous.
So the Repo percentage, which has been reduced by 100 basic points (BPS) since February 2025, will take place at 5.50 percent. Repo rate is the interest rate with which banks draw funds from RBI to overcome liquidity masses in the short term.
Governor Sanjay Malhotra said that total inflation -forecasts have become even more good -natured due to a strong decrease in food prices and the rationalization of GST rationalization, even if he emphasized that the growth will remain under the ambitions of the central bank.
He noted that the impact of pre -taxed monetary policy action and recent tax measures is still playing.
Malhotra underlined that it is wise to wait for earlier policy actions to play and greater clarity to appear before they map the following course of action.
The central bank increased GDP growing projection for FY26 to 6.8 percent from 6.5 percent earlier.
Retail inflation projection has been revised to 2.6 percent for FY26 (versus 3.1 percent earlier).
Published on October 1, 2025
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