The decision to keep interest rates unchanged was taken unanimously.
The Standard Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate have also been left unchanged in response to the policy decision.
MPC has cut interest rates by 100 basis points since February this year. RBI Governor Sanjay Malhotra, during the previous policy in June, had said that having cut repo rates in quick time, the committee is of the view that there is now very little policy room to support growth.
India's central bank has maintained its stance as "neutral", having updated it back during the June policy. The central bank had changed the stance to "accommodative" during the April policy. The decision to keep the stance as "neutral" was also a unanimous one.
In his post-policy statement, Governor Malhotra said that the Indian economy holds bright prospects in a changing world order, adding that co-ordinated tools have helped accelerate transmission of monetary policy.
The central bank
The forecast for the first two quarters have been left unchanged at 6.5% and 6.7% respectively, and for the remaining quarters has also been left unchanged at 6.6% and 6.3% respectively.
The RBI has trimmed its consumer price inflation (CPI) forecast for the full financial year to 3.1% from 3.7% earlier.
Inflation forecast for the second quarter has been trimmed to 2.1% from 3.4% earlier, while that for the third quarter has been cut to 3.1% from 3.9%
While inflation forecast for the fourth quarter has been left unchanged at 4.4%. However, an unfavourable base effect would mean the inflation for the first quarter of financial year 2027 may increase to 4.9%.
