Investment Insights
RBI Monetary Policy Review - August 2025
Table of Contents
Please see the RBI's Monetary Policy Review August 2025.
Key Highlights:
The MPC decided to keep the policy repo rate unchanged at 5.50% while maintaining a ‘Neutral’ stance, highlighting the need for continued close monitoring of data and evolving growth-inflation dynamics to guide future policy decisions.
The inflation forecast for FY’26 was revised downwards to 3.1% from 3.7%, largely due to decline in food inflation.
The GDP forecast for FY’26 remains unchanged at 6.5% owing to the challenging global environment.
In light of the current macroeconomic landscape, outlook and and prevailing uncertainties, maintaining the existing policy repo rate is warranted to ensure effective transmission of the earlier front-loaded rate cuts to credit markets and the broader economy.
