RBI MPC Meeting Highlights: Repo rate steady at 5.5%, says Governor Sanjay Malhotra

The Reserve Bank of India (RBI) on Wednesday, October 1, 2025, held the benchmark repo rate unchanged at 5.5% for the second straight policy review, citing uncertainty over tariff-related pressures. Presenting the fourth bi-monthly monetary policy for FY26, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) voted unanimously to maintain the policy rate at 5.5% and continue with a neutral policy stance. The October review comes close on the heels of a Goods and Services Tax (GST) reduction and at a time when domestic demand is expected to pick up despite tariff headwinds. On the inflation front, the RBI lowered its FY26 CPI forecast to 2.6%, down from the earlier 3.1% projection. Retail inflation has been running below 4% since February, slipping to a six-year low of 2.07% in August, supported by softening food prices and a favourable base effect. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.