RBI MPC keeps repo rate unchanged at 5.50%, retains neutral stance
The Reserve Bank of India's Monetary Policy Committee, at its meeting of 4â6 August 2025, unanimously kept the policy repo rate unchanged at 5.50% and continued with a neutral stance.
Summary
The Monetary Policy Committee (MPC) of the Reserve Bank of India, at its 56th meeting held from 4 to 6 August 2025 under Governor Sanjay Malhotra, unanimously voted to keep the policy repo rate unchanged at 5.50%. The standing deposit facility (SDF) rate remains 5.25% and the marginal standing facility (MSF) rate and Bank Rate 5.75%, and all members decided to continue with the neutral stance. The MPC projected real GDP growth for 2025-26 at 6.5% and CPI inflation at 3.1%, and noted that the impact of the 100 basis points of rate cuts since February 2025 is still unfolding.
Key facts
- Meeting
- 56th MPC, 4â6 Aug 2025, chaired by Governor Sanjay Malhotra
- Repo rate
- 5.50% (unchanged, unanimous)
- SDF
- 5.25%
- MSF and Bank Rate
- 5.75%
- Stance
- Neutral
- 2025-26 projections
- GDP growth 6.5%; CPI inflation 3.1%
- Cuts since Feb 2025
- 100 basis points
Practice MCQs 4 questions
At what level did the RBI's Monetary Policy Committee keep the policy repo rate in its August 2025 meeting?
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Correct answer: C â 5.50%
The MPC unanimously voted to keep the policy repo rate unchanged at 5.50%.
What CPI inflation did the RBI's MPC project for 2025-26 in August 2025?
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Correct answer: D â 3.1%
Considering all factors, CPI inflation for 2025-26 was projected at 3.1%.
Consider the following statements about the RBI's monetary policy decision of August 2025: 1. The standing deposit facility rate remained at 5.25% and the marginal standing facility rate at 5.75%. 2. The MPC changed its stance from neutral to accommodative. Which of the above is/are correct?
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Correct answer: A â 1 only
Statement 1 is correct: the SDF rate stayed at 5.25% and the MSF rate and Bank Rate at 5.75%. Statement 2 is incorrect: all members decided to continue with the neutral stance.
Consider the following statements about the RBI's August 2025 policy: 1. The MPC projected real GDP growth for 2025-26 at 6.5%. 2. The decision to keep the repo rate unchanged was taken by a 4â2 majority. Which of the above is/are correct?
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Correct answer: A â 1 only
Statement 1 is correct: real GDP growth for 2025-26 was projected at 6.5%. Statement 2 is incorrect: the MPC voted unanimously to keep the repo rate unchanged.