The Reserve Bank of India’s Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, retained the benchmark repo rate at 5.5%, after front loading the three rate cuts in February, April and June this year.
Speaking about inflation, the RBI Governor said that there is a considerable moderation in the headline reading and added that the growth-inflation narrative has altered since August.
The avgerage headline inflation for FY26 has thus been revised lower to 2.6% from 3/1% earlier.
After the review, the Monetary Policy Committee decided the following:
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To maintain the policy repo rate at 5.5% with a Z:Z majority.
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The standing deposit facility rate, pegged 25 basis points below the repo rate, remains unchanged at 5.25%.
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The marginal standing facility rate, which is 25 basis points above the repo rate, remains unchanged at 5.75%.
The committee also retained its stance at ‘neutral’, Governor Malhotra announced.
