RBI keeps repo rate unchanged at 5.5%: Governor Malhotra

In a unanimous decision the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has kept the repo rate unchanged at 5.5 per cent in its August policy meeting. The decision was announced by RBI Governor Sanjay Malhotra on Wednesday. The Monetary Policy Committee (MPC), which met on the 4th, 5th, and 6th of August, carefully reviewed the latest economic and financial conditions before taking this decision. "Core inflation has remained steady as expected at 4 per cent," he said.

#WATCH | Giving Monetary Policy statement, RBI Governor Sanjay Malhotra says, " The uncertainties of tariffs are still evolving..."

"The MPC noted that while headline inflation is much lower than projected earlier, it is mainly due to volatile food prices. Inflation is… pic.twitter.com/dLmcCxuDZv

— ANI (@ANI) August 6, 2025

Governor Malhotra added that the economic outlook looks positive. "The monsoon season is progressing well, and the upcoming festival season usually increases economic activity. Combined with supportive government and RBI policies, this situation bodes well for the Indian economy in the near term," he said.

Watch: RBI Governor Sanjay Malhotra says, "...Taking all these factors into account, real GDP growth for 2025–26 (the current year) is projected at 6.5%, in line with our earlier projection with Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6%, and Q4 at 6.3%. Real GDP growth for Q1 of 2026–27… pic.twitter.com/AVwAEptzsF

— IANS (@ians_india) August 6, 2025

He further said that the Standing Deposit Facility rate will remain at 5.25%, and the Marginal Standing Facility rate and the Bank Rate will continue at 5.75%. "The MPC also decided to continue with a neutral stance," he added."Growth is robust and as our earlier projections go, of course, below our expectations. The uncertainties of tariffs are still evolving. Monetary policy transmission is continuing," said Malhotra.

VIDEO | Reserve Bank of India (RBI) Governor Sanjay Malhotra says, "The domestic growth is holding up and is broadly revolving around the lines of our assessment. Even though there were some high-frequency indicators that showed missed signals in May this year. Rural consumption… pic.twitter.com/tKfXBiZEYk

— Press Trust of India (@PTI_News) August 6, 2025

“The MPC further resolved to maintain a close vigil on the incoming data and the evolving domestic growth-inflation dynamics to chart out the appropriate monetary policy path. Accordingly, all members decided to continue with a neutral stance," Malhotra said.

(Business Correspondent)