RBI Monetary Policy Meeting: The Reserve Bank of India has kept the repo rate unchanged at 5.5%. This move has signalled the RBI’s neutral monetary policy stance. RBI Governor and head of the RBI Monetary Policy Committee, Sanjay Malhotra announced the policy on October 1. Most of the economists expected the repo rate to stay at 5.5%. Lower inflation could allow for rate cuts, but risks from US tariffs and GST-related disruptions make policymakers cautious. However, rates may be eased later this year.
Sanjay Malhotra highlighted that India’s GDP is now projected to grow at 6.8%. This growth was earlier forecasted of 6.5%. He also added that this reflects stronger economic momentum, supported by robust domestic demand and favourable policy measures.
What RBI Governor Sanjay Malhotra Said
“Ongoing tariff and trade policy uncertainties will impact external demand; prolonged geopolitical tensions and volatility in international financial markets, caused by the risk of sentiments of investors, pose downside risks to the growth outlook. The implementation of several growth-inducing structural reforms, many of which were announced by the PM on 15th August, including the streamlining of GST, is expected to offset some of the adverse effects of the external headwinds. Taking all these factors into account, real GDP growth for this year is now projected at 6.8 per cent. This is a revision from our earlier forecast of 6.5%; now it is projected at 7%, Q3 at 6.4%, and Q4 at 6.2%. Real GDP growth for Q1 next year is projected at 6.4%. The risks are evenly balanced.” RBI Governor Sanjay Malhotra Said.
#WATCH | On the Monetary Policy, RBI Governor Sanjay Malhotra says, "The Monetary Police Committee (MPC) considered it prudent to wait for the impact of policy actions to play out and for greater clarity to emerge before starting the next course of action. Accordingly, the MPC… pic.twitter.com/PrGnOMBXse
---Advertisement---— ANI (@ANI) October 1, 2025
#WATCH | RBI Governor Sanjay Malhotra says, "Ongoing tariff and trade policy uncertainties will impact external demand, prolonged geopolitical tensions and volatility in international financial markets, caused by the risk of sentiments of investors, pose downside risks to the… pic.twitter.com/mKITobXAD8
— ANI (@ANI) October 1, 2025
What Experts Expected after RBI MPC Meeting
Economists broadly expect the MPC to maintain the status quo on policy rates, which would mark the second consecutive pause. Between February and June 2025, the RBI had lowered the repo rate by a cumulative 100 basis points (bps) to 5.5%, where it currently stood.
