RBI MPC Meeting August 2025 Key Takeaways: Reserve Bank of India governor Sanjay Malhotra kept the repo rate unchanged at 5.50 per cent as the three-day Monetary Policy Meeting (MPC) August 2025 concluded today (Wednesday, August 6, 2025).

Malhotra said that the policy stance remains neutral.

The central bank also maintained its FY26 GDP growth estimate at 6.5 per cent.

CPI headline inflation estimates for FY26 have been reduced from 3.7 per cent to 3.1 per cent, said the governor, highlighting that the same for Q2 have been slashed to 2.1 per cent from 3.4 per cent. 

Speaking about the current state of the Indian economy, he said that tariff uncertainty persists, while the transmission of policy rate cuts continues.

He said that the decision not to change the repo rate is due to uncertainties.

Malhotra said that rural demand in India remains strong, while urban demand has also improved.

Here are other key takeaways from the RBI governor’s speech after the MPC meeting.

Repo rate 

After three consecutive repo rate cuts, the RBI governor took a pause as he maintained the repo rate at 5.5 per cent.

It was a change from the last 3 terms when the rate was changed from 6.50 per cent to 6.25 per cent in February, from 6.25 per cent to 6 per cent in April and from 6 per cent to 5.50 per cent in June.

The pause was widely expected and comes amid a time when US president Donald Trump is increasing tariff rates for India.

Even as he maintained the repo rate, the standing deposit facility (SDF) rate remained as it was at 5.25 per cent, while there was no change in the marginal standing facility (MSF) rate at 5.75 per cent.

GDP growth forecast

The RBI maintained FY26 GDP growth forecast at 6.5 per cent.

Malhotra said that the sowing of Kharif crops increased due to a good monsoon.

He highlighted that all members agreed to maintain a ‘neutral’ stance.

Q1FY26 GDP forecast maintained at 6.5 per cent.

Q3FY26 GDP forecast maintained at 6.6 per cent.

Q4FY26 GDP forecast maintained at 6.3 per cent.

CPI FY26 inflation estimates cut 

CPI inflation estimates for FY26 were cut to 3.1 per cent from 3.7 per cent.

The RBI governor says CPI inflation can go over 4 per cent in the fourth quarter (Q4).

The GDP forecast for Q2 FY26 was cut to 2.1 per cent from 3.4 per cent, while for Q3, it was slashed to 3.1 per cent from 3.9 per cent.

The RBI maintained the status quo for Q4 FY26 GDP estimates at 4.4 per cent.

The estimate for Q1 FY27 is 4.9 per cent.