“RBI’s monetary policy committee keeps repo rate unchanged at 5.5%, maintains neutral Stance

The Monetary Policy Committee (MPC) of the Reserve Bank of India today kept the repo rate unchanged at 5.5%, maintaining a neutral stance. Consequently, the standing deposit facility (SDF) rate will be at 5.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 5.75 per cent. This follows a 100 bps cut since February and comes ahead of the festive season.
 
The RBI retained its FY26 GDP growth forecast at 6.5% despite US tariffs on Indian imports. Inflation for FY26 is projected at 3.1%, lower than June’s 3.7% estimate, though CPI is expected to reach 4.9% in FY27. With easing inflation and global uncertainties, the RBI signalled a cautious approach to support domestic demand while managing external risks. The MPC met on 4, 5 and 6th of August 2025.