RBI MPC Keeps Key Interest Rates Unchanged: Repo Rate At 5.5%, Stance Remains 'Neutral'

RBI Repo Rate News: The Reserve Bank of India’s (RBI) monetary policy committee (MPC) has kept the key repo rate unchanged at 5.5% in its October bi-monthly monetary policy review, Governor Sanjay Malhotra

announced on Wednesday. The decision has been taken unanimously, while the RBI MPC’s policy stance remains ‘neutral’.

The RBI has also revised upwards its GDP forecast for FY26 to 6.8%, from 6.5% earlier. It projects inflation at 2.6% for FY26, lower than the earlier estimate of 3.1%.

The RBI also maintained the standing deposit facility (SDF) at 5.25 per cent, as well as marginal standing facility (MSF) and bank rates at 5.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.

Announcing the fourth bi-monthly policy review of FY26, Malhotra said, “Economic growth outlook remains resilient helped by favourable monsoon, lower inflation and monetary easing… Domestic economic activities continue to sustain momentum in 2nd quarter of this fiscal.”

He added that growth-inducing policy reforms announced by PM will counter the adverse effects of tariff.

“GST and other reforms to offset impact of external factors on economic growth to some extent,” the RBI governor said.

The RBI has already reduced the repo rate three times by 100 bps in the current rate cut cycle — 25 bps cut each in February and April, and 50 bps in June. However, in the previous policy, August 2025, the key policy rate was kept unchanged at 5.5%, with the ‘neutral’ stance.

The retail inflation is trending below 4 per cent since February this year. It eased to a six-year low of 2.07 per cent in August, aided by an easing of food prices and favourable base effect.