reserve Bank of India (RBI) Governor Sanjay Malhotra announced the decisions at the Monetary Policy Committee (MPC) meeting which started on 4 August today. The Reserve Bank of India has decided to keep the repo rate stable at 5.5 percent. The RBI Governor did not announce any change in the repo rate this time. Let us tell you that the RBI has cut the repo rate by 1.00 percent this year. The central bank reduced the repo rate in February, April and June this year. The RBI had reduced 0.25 percent in February this year, 0.25 percent in April and then 0.50 percent in June.
Decision taken keeping in mind the current circumstances
Sanjay Malhotra said that keeping in mind the current circumstances, the Monetary Policy Committee has decided to keep the repo rate stable. The RBI has reduced the estimate of retail inflation for the current financial year to 3.1 percent while earlier it was estimated to be 3.7 percent. The governor said that the impact of the 1 percent cut in the repo rate is not yet fully shown. In addition, the Monetary Policy Committee has also decided to maintain its neutral stance.
The MPC said, “Inflation is much lower than earlier estimates, but the main reason for this is food prices fluctuations. Inflation is estimated to increase from the last quarter of this financial year. According to our earlier estimates, the growth rate is strong. Tariff’s uncertainties are still emerging. Given the comprehensive economic conditions, it is necessary to maintain the repo rate at 5.5%.
Announcement to keep SDF and MSF rate stable
The RBI Governor said that the monsoon is making good progress in the country, which will speed up the economy. The Reserve Bank of India has also announced to keep the SDF (Standing Deposit Facility) rate stable at 5.25 percent. In addition, it has been decided to keep the MSF (Marginal Standing Facility) rate stable at 5.75 percent without changing.
RBI has retained GDP growth for the current financial year 2025-26 at 6.5 percent. The RBI Governor said that risk can cause balanced and geopolitical stress obstacles on both sides. He said that the growth of the industrial sector is dull and unstable.
Latest business news
