RBI Monetary Policy Review - August 2025

Please see the  RBI's Monetary Policy Review August 2025.

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Key Highlights:

• The MPC decided to keep the policy repo rate unchanged at 5.50% while maintaining a ‘Neutral’ stance, highlighting the need for continued close monitoring of data and evolving growth-inflation dynamics to guide future policy decisions.
• The inflation forecast for FY’26 was revised downwards to 3.1% from 3.7%, largely due to decline in food inflation.
• The GDP forecast for FY’26 remains unchanged at 6.5% owing to the challenging global environment.
• In light of the current macroeconomic landscape, outlook and and prevailing uncertainties, maintaining the existing policy repo rate is warranted to ensure effective transmission of the earlier front-loaded rate cuts to credit markets and the broader economy.

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