Newsletter
The RBI has hit pause again. The Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25%, and the decision was unanimous.
Breaking it down: it also stuck with a ‘neutral’ stance, which is basically the RBI saying it will stay flexible and react to how the economy behaves next.
This is the third time in the last four policy meetings that rates have been left untouched, after the RBI cut rates by a total of 1% across February, April, and June 2025.
What does this mean for you: loan EMIs are unlikely to move much right now. So if you are paying a home loan, car loan, or personal loan, this is a no fresh shock kind of update.
On inflation, the RBI slightly raised its forecast from 2% to 2.1%, but stressed that price pressures are still under control and within the tolerance band.
The RBI also sounded upbeat on growth. Governor Sanjay Malhotra said high-frequency indicators show the momentum remains strong, and the central bank raised its FY26 growth forecast slightly to 7.4% from 7.3%.
He added that India’s growth outlook looks steady, helped by improving trade tailwinds, even as global risks like geopolitical tensions and nervous bond markets continue to hover in the background.
