RBI Holds Repo Rate at 5.5% and Maintains ‘Neutral’ Stance in 4th Bi-Monthly Monetary Policy Committee Meeting FY 2025–26.

The Reserve Bank of India (RBI) conducted its 57th and 4th Bi-Monthly Monetary Policy Committee (MPC) Meeting of the financial year 2025–26 from September 29 to October 1, 2025, under the chairmanship of Shri Sanjay Malhotra, Governor of RBI. The MPC unanimously decided to keep the policy repo rate unchanged at 5.5%, maintaining a ‘Neutral’ stance amid moderating inflation and ongoing fiscal transmission effects.

      - The 4th Bi-Monthly MPC Meeting was chaired by Shri Sanjay Malhotra and attended by MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta, and Shri Indranil Bhattacharyya.

      - All MPC members voted unanimously to retain the repo rate at 5.5% under the Liquidity Adjustment Facility (LAF). The RBI stated that the decision was taken to balance inflation control with the need to support economic growth, keeping monetary conditions steady.

Main Point :-   (i) The Standing Deposit Facility (SDF) rate remained at 5.25%, while the Marginal Standing Facility (MSF) rate and the Bank Rate were held at 5.75%. Similarly, the Reverse Repo Rate stood at 3.35%, the Cash Reserve Ratio (CRR) at 3.00%, and the Statutory Liquidity Ratio (SLR) at 18.00%, ensuring overall monetary stability.

      (ii) The Monetary Policy Committee decided to continue with the ‘Neutral’ stance, emphasizing flexibility in responding to future inflationary pressures and economic developments.

(iii) According to the MPC, inflation has moderated but earlier monetary policy actions and fiscal measures are still filtering through the economy. Hence, it was considered prudent to maintain current rates to observe the full impact of previous decisions before any policy adjustment, ensuring sustainable growth with price stability.
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