In its latest policy review on 6 August 2025, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.50%, maintaining a “neutral” stance. This decision follows aggressive rate cuts earlier this year to boost consumption. Governor Sanjay Malhotra stated that while inflation has moderated and is expected to remain within the target band (FY26 projection: 3.1%), the RBI will continue monitoring global trade tensions—especially in light of the U.S. tariff hikes and geopolitical uncertainty.
The RBI reaffirmed India’s GDP growth forecast at 6.5% for FY26, noting steady rural demand, improving services activity, and resilient household spending. While the central bank acknowledged potential risks from external shocks like oil prices and global slowdown, it reiterated its confidence in India’s domestic economic fundamentals. Markets responded cautiously, with analysts describing the tone as “growth-positive but watchful.
