Reserve Bank of India (RBI) Governor Sanjay Malhotra | Photocredit: Francis Mascarenhas
The Reserve Bank of India (RBI) held its policy interest unchanged on Wednesday at 5.5 percent for the second consecutive time, stating concern about the rate of uncertainties.
The RBI governor Sanjay Malhotra, the fourth bi-monthly monetary policy of the current tax, said that the Monetary Policy Committee (MPC) unanimously decided to keep the short-term Lending of Repo rate unchanged at 5.5 percent with a neutral position.
Although GST rationalization will have a sobering impact on consumption and growth, tariff -related developments can delay economic expansion in the second half of the current tax, he said.
Since February 2025, the RBI has reduced the policy percentage with 100 basic points. In his earlier policy assessment in June, it had tried the Repo rate with 50 basis points to 5.5 percent.
The Central Bank has commissioned the government to ensure that the consumer price index (CPI) -based retail Inflation remains 4 percent with a margin of 2 percent on both sides.
Based on the recommendation of the MPC, the RBI reduced the Repo rate each with 25 BPS each in February and April, and 50 basic points in June in the midst of the release of retail -inflation.
Shopping inflation has been trending below 4 percent since February of this year. In August it relieved a lowest point of six years of 2.07 percent, helped by a reduction in food prices and a favorable basic effect.
Published on October 1, 2025
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