RBI monetary policy: The Reserve Bank of India (RBI) on Wednesday, October 1, maintained a status quo on repo rate and policy stance, highlighting India’s favourable growth-inflation dynamics.
Meeting Street expectations, RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5 per cent, and maintained the policy stance as ‘neutral’.
“Growth-inflation dynamics have shifted since the August monetary policy. The rationalisation of GST is expected to have a dampening effect on inflation,” said Governor Malhotra.
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RBI MPC Meeting: Key highlights
1. Status quo on rate, policy stance
The central bank decided to keep the repo rate and monetary policy stance unchanged as the risk of inflation remains lower due to a healthy monsoon and GST cuts, while the growth outlook remains bright.
After cutting rates by 50 basis points in June, the RBI maintained a status quo on rates in its August and September policy meetings.
2. Growth forecast revised upwards
The RBI has raised India’s FY26 GDP growth estimates to 6.8 per cent from the previously projected 6.5 per cent.
(This is a developing story. Please check back for fresh updates.)
