RBI Keeps Repo Rate Unchanged at 5.5% in Latest Monetary Policy Meet

The Reserve Bank of India (RBI) plays a crucial role in shaping the country’s economic policies, including controlling inflation, managing liquidity, and supporting growth. Every RBI monetary policy announcement attracts attention from businesses, investors, and citizens, as it directly affects borrowing costs, savings, and overall economic activity.

RBI Monetary Policy 2025: Repo Rate Holds, GDP Forecast Upgraded

In its Monetary Policy 2025, the RBI, under Governor Sanjay Malhotra, kept the repo rate unchanged at 5.5% and maintained a neutral stance. The central bank also raised the GDP growth forecast for FY26 to 6.8% (up from 6.5%) and lowered the inflation estimate to 2.6% (down from 3.1%), signaling confidence in stronger economic growth with stable prices.

Key Points of RBI Monetary Policy 2025

The Reserve Bank of India’s Monetary Policy sets key interest rates and outlines the economic outlook and regulatory measures that impact businesses and citizens alike. The latest policy highlights focus on maintaining stable rates, supporting growth, keeping inflation under control, and introducing initiatives to make banking more efficient and accessible.

1. Policy Rates & Measures

• Repo Rate: 5.50% (unchanged)
• Stance: Neutral
• Cash Reserve Ratio (CRR): 3%
• Standing Deposit Facility (SDF) Rate: 5.25%
• Marginal Standing Facility (MSF) Rate: 5.75%
• Bank Rate: 5.75%
• MPC Decision: Unanimous vote to maintain current rates

2. GDP Growth Outlook

• FY26 GDP Growth: 6.8% (previously 6.5%)

Quarterly Estimates for FY26:

• Q1: 6.5% (unchanged)
• Q2: 7.0% (up from 6.7%)
• Q3: 6.4% (down from 6.6%)
• Q4: 6.2% (down from 6.3%)
• Q1 FY27: 6.4% (down from 6.6%)

3. Inflation Forecast (CPI)

• FY26 Inflation: 2.6% (down from 3.1%)

Quarterly Estimates:

• Q2: 2.1% (cut from 3.4%)
• Q3: 3.1% (cut from 3.9%)
• Q4: 4.4% (unchanged)
• Q1 FY27: 4.9%
• These figures suggest a stable inflation environment, giving RBI flexibility to support economic growth.

4. Other Key Announcements

• Re-KYC Camps for Jan Dhan Accounts: To encourage micro insurance and pension enrolments.
• Simplified Claim Settlement: Standardised process for deposits of deceased customers to make banking more efficient.
• RBI Retail Direct: Launch of an Auto-bidding facility for investing and reinvesting in Treasury Bills (T-bills).