Reserve Bank of India Holds Repo Rate at 5.50% at August 2025 MPC Meeting

The Reserve Bank of India held its benchmark repo rate at 5.50% at its August 2025 Monetary Policy Committee meeting, opting to pause its easing cycle to wait for further transmission of its front-loaded rate cuts to credit markets and the broader economy. The decision, communicated in a statement published on the central bank's website, leaves borrowing costs unchanged after 100 basis points of rate cuts since February 2025.

The MPC voted unanimously to keep the repo rate at 5.50%, retained its neutral stance and said it would wait for further transmission of the front-loaded rate cuts. The RBI retained its GDP growth projection of 6.5% for FY2026.

INFLATION OUTLOOK

The MPC noted that headline CPI inflation had fallen to 2.1% in June but projected it to edge above 4% from the fourth quarter of FY2026.

POLICY GUIDANCE

The MPC said it would maintain a close vigil on incoming data and the evolving growth-inflation dynamics to chart the appropriate policy path.