RBI keeps repo rate at 5.50%, raises FY26 growth forecast to 6.8%
The RBI's Monetary Policy Committee on 1 October 2025 unanimously kept the repo rate unchanged at 5.50% with a neutral stance, raised the 2025-26 GDP growth forecast to 6.8% and cut the inflation forecast to 2.6%.
Summary
The Reserve Bank of India's Monetary Policy Committee (MPC), which met from 29 September to 1 October 2025, voted unanimously to keep the policy repo rate unchanged at 5.50% and to continue with a neutral stance. The standing deposit facility (SDF) rate stays at 5.25%, and the marginal standing facility (MSF) rate and Bank Rate at 5.75%. Governor Sanjay Malhotra announced that real GDP growth for 2025-26 is now projected at 6.8%, up from 6.5%, and CPI inflation at 2.6%, down from 3.1% projected in August. The MPC said the inflation outlook had turned more benign because of a sharp fall in food prices and the rationalisation of GST rates.
Key facts
- Repo rate
- 5.50% â unchanged (unanimous)
- Stance
- Neutral
- SDF / MSF / Bank Rate
- 5.25% / 5.75% / 5.75%
- FY26 GDP forecast
- 6.8% (from 6.5%)
- FY26 CPI forecast
- 2.6% (from 3.1%)
- Meeting
- 29 Sep â 1 Oct 2025
- Governor
- Sanjay Malhotra
Practice MCQs 4 questions
At what level did the RBI's Monetary Policy Committee keep the policy repo rate on 1 October 2025?
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Correct answer: A â 5.50%
The MPC unanimously kept the repo rate unchanged at 5.50%.
In its October 2025 policy, what real GDP growth did the RBI project for 2025-26?
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Correct answer: C â 6.8%
The RBI raised its 2025-26 real GDP growth projection to 6.8% from 6.5%.
After the RBI's October 2025 policy, what is the Standing Deposit Facility (SDF) rate?
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Correct answer: D â 5.25%
With the repo rate at 5.50%, the SDF rate remains at 5.25% and the MSF rate and Bank Rate at 5.75%.
Consider the following statements about the RBI's monetary policy of 1 October 2025: 1. The MPC cut the repo rate by 25 basis points. 2. The CPI inflation projection for 2025-26 was lowered to 2.6%. Which of the above is/are correct?
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Correct answer: B â 2 only
Statement 1 is wrong: the repo rate was kept unchanged at 5.50%. Statement 2 is correct: the inflation projection was cut to 2.6% from 3.1%.