After a one percentage point cut in the policy repo rate in three tranches — between February and June — the Monetary Policy Committee (MPC) of India’s central bank left the rate unchanged at 5.5 per cent in August. The “neutral” monetary policy stance also stayed put. Both decisions of the Reserve Bank of India’s (RBI’s) six-member rate-setting body were unanimous.
While reducing the policy rate by half a percentage in June, the RBI had changed its stance from “accommodative” to “neutral”.
In August, the RBI also left its gross domestic product (GDP) growth estimate for 2025-26 (FY26) unchanged at