Ram Kumar 
RBI रेपो रेट अगस्त 2025
In the much-anticipated August 2025 bi-monthly monetary policy review, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.5%, maintaining a ‘neutral’ policy stance. This move was widely expected by economists and market participants amid mixed signals from inflation and growth data.
Food Inflation Drives Caution
The Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra, highlighted that the recent drop in inflation is largely due to volatile food prices, especially vegetables. However, the central bank warned that this dip may be temporary, driven more by seasonal corrections than structural changes.
Looking ahead to 2026, the RBI projected that consumer price inflation (CPI) is likely to rise above the 4% target, narrowing the scope for further monetary easing in this cycle.
Growth Outlook Holds Steady at 6.5%
Despite global uncertainties and sluggish external demand, the RBI retained its GDP growth forecast at 6.5% for FY26. The central bank pointed to resilient domestic drivers including strong private consumption, steady investment momentum, and public capex as key supports to the Indian economy.
Governor Malhotra emphasized that while growth fundamentals remain intact, the RBI will stay watchful of global headwinds, supply-side shocks, and potential weather-related disruptions to agriculture.
Neutral Stance Signals Data-Dependent Approach
By keeping its stance neutral, the RBI has signaled a balanced policy path, allowing flexibility to respond to both inflationary spikes and growth slowdowns. The central bank reiterated its commitment to anchoring inflation expectations while ensuring sufficient liquidity to support productive sectors.
Markets React Calmly
The policy decision prompted a muted reaction from financial markets, indicating it was well priced-in. Bond yields remained steady, and the stock market showed little volatility in the immediate aftermath of the announcement.
Disclaimer:- This article is based on official statements from the Reserve Bank of India’s Monetary Policy Committee meeting held in August 2025. It is intended for informational purposes only and does not constitute financial or investment advice.
