RBI MPC Meeting August 2025: Repo Rate Unchanged at 5.5%, Focus on Supporting Growth

In the latest RBI Monetary Policy Committee (MPC) Meeting, held on August 6, 2025, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.5%. This is a positive decision partly because inflation rate is stable, better than normal monsoon season, and the Indian economy is exhibiting plenty of positive growth signs. During the statement, RBI Governor Sanjay Malhotra stated the central bank will do whatever is needed to support growth.

RBI to Announce Interest Rate Decision Today: What Happened

The eagerly anticipated RBI monetary policy meeting August 2025 has come to an end, with the Central Bank of India keeping the repo rate unchanged at 5.5%. This outcome goes along with expectations from experts, given the global and national economic placidness at present.

Highlights from the Monetary Policy Committee Announcement (Live)

• Repo rate held steady at 5.5%
  
• GDP growth for FY26 remained at 6.5%
  
• CPI inflation for FY26 revised lower to 3.1% (originally projected at a rate of 3.7% in June)

Supporting developments include above average monsoon, improving capacity utilization as well as stable financial circumstances

The above updates were announced during an RBI Monetary Policy Committee live updates session.

RBI’s Stand: Growth First, Watchful Eye on Inflation

In a media briefing after the announcement, Governor Malhotra said, 

“We will do whatever needs to be done in the case of that scenario. Certainly, trade negotiations are still ongoing. We are optimistic we will be able to reach a resolution that is beneficial/satisfactory to all parties.” 

The RBI MPC meeting indicates that caution is the proper stance as India faces outside pressure such as the United States’ decision to enact a 25% tariff on Indian imports as of August 7.

Why the Repo Rate Was Not Changed

The RBI decision to hold the rate steady during this monetary policy committee announcement live was supported by some important macroeconomic signals:

• Inflation is contained
  
• Economic activity is returning
  
• Trade and tariff uncertainty remains in the mix

Given these mixed signals, the RBI appears to prefer to wait and watch the situation before deciding on further aggressive policy options.