RBI MPC Meeting 2025 LIVE Updates: The Reserve Bank of India (RBI) on Wednesday, August 6, kept the key policy repo rate unchanged at 5.5 per cent after
a detailed assessment of the current economic and financial conditions. RBI Governor Sanjay Malhotra announced the Monetary Policy Committee (MPC) decision during a press briefing, confirming a unanimous vote to maintain the status quo.
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India’s outlook remains strong
Addressing the media, Governor Malhotra said, “The Indian economy holds bright prospects in the changing world order, drawing on its inherent strength, robust fundamentals and comfortable buffers.”
He added that the country is actively working on creating enabling conditions through a “multi-pronged yet cohesive approach to policymaking” to tap into new opportunities.
Focus on rate cut transmission
Explaining the rationale behind maintaining the repo rate, the Governor noted that the impact of the 100 basis points rate cut since February 2025 is still unfolding across the broader economy.
“Monetary policy transmission is continuing. Given the current macroeconomic outlook and prevailing uncertainties, it is prudent to continue with the policy repo rate of 5.5% and wait for further transmission of the front-loaded rate cut,” he said.
Neutral stance retained
The MPC also decided to maintain its neutral stance, indicating a balanced approach toward future policy moves. Malhotra noted that headline inflation has declined more than expected, mainly due to volatility in vegetable prices.
“Core inflation remains steady around the 4% mark, as anticipated,” he said, suggesting that underlying price pressures are under control.
Domestic growth steady, mixed consumption trends
On the growth front, the Governor said that domestic economic activity remains broadly in line with expectations, despite some mixed signals from high-frequency indicators in May and June.
“Rural consumption continues to be resilient, though the revival in urban discretionary spending remains tepid,” Malhotra said.
The RBI’s decision aligns with expectations amid a mixed global backdrop and ongoing efforts to support domestic economic recovery while keeping inflation in check.
GDP growth outlook retained at 6.5% for FY26
The RBI has retained its real GDP growth projection for 2025–26 at 6.5%, unchanged from earlier estimates. The quarterly breakdown is as follows:
Q1 FY26: 6.5%
Q2 FY26: 6.7%
Q3 FY26: 6.6%
Q4 FY26: 6.3%
For Q1 of 2026–27, the real GDP growth is projected at 6.6%. “The risks are evenly balanced,” Governor Malhotra added.
