By Martin Shwenk Leade

Copyright indiatimes

ET OnlineRBI MPC Meeting 2025-26 Key Takeaways

The Reserve Bank of India’s Monetary Policy Committee began three-day deliberations on Monday, to discuss the key interest rates that will drive the banking ecosystem forward. The decision of the RBI Governor Sanjay Malhotra-headed six-member rate-setting panel will be announced soon.This meeting takes place in the backdrop of ongoing global uncertainties, including high US tariffs on pharmaceuticals, 50% tariff on Indian shipments and ongoing wars around the world that are majorly driving the dynamic prices of currency, oil and other commodities.Starting February 2025, RBI has reduced the key lending rate, repo rate by 100 basis points in three tranches, amid declining consumer price index (CPI) based inflation. In the last MPC held in August, the central bank decided to maintain a status quo. The rate-setting committee decided to take a wait-and-watch approach to assess the impact of US tariffs and other geopolitical developments on the domestic economy.RBI MPC: Key Takeaways from last meetingRepo rate remained unchanged at 5.5%Bank Rate remained unchanged at 5.75%Marginal standing facility (MSF) rate remained unchanged at 5.75%Standing deposit facility (SDF) rate remained unchanged at 5.25%Liquidity adjustment facility (LAF) remained unchanged at 5.25%MPC, in its August meet, took the above-mentioned decisions with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.Also read: RBI Policy Meeting 2025 Live UpdatesLive EventsRBI MPC Key Takeaways: Growth OutlookRBI retained the projection for real GDP growth for 2025-26 at 6.5%.Q1: 6.5%Q2: 6.7%Q3: 6.6%Q4: 6.3%”We are also approaching the festival season, which typically brings greater enthusiasm and buoyancy in economic activity. This favourable domestic setting, together with supportive policies of the Government and the Reserve Bank, augurs well for the Indian economy in the near term, as geopolitical uncertainties have somewhat abated, even though global trade challenges continue to linger,” Malhotra said earlier.RBI MPC Key Takeaways: Inflation Outlook In June 2025, CPI headline inflation declined for the eighth consecutive month to a 77-month low of 2.1% (y-o-y). In the last meeting, the central bank committee predicted that CPI inflation is likely to edge up above 4% by Q4 FY26 and beyond as unfavourable base effects, and demand side factors from policy actions come into play.The CPI inflation for FY26 was projected at 3.1%Q2: 2.1%Q3: 3.1%Q4: 4.4%Q1 FY27: 4.9%In the last MPC, the six-member committee, headed by Malhotra, unanimously voted to keep the repo rate unchanged. The MPC further resolved to maintain a close vigil on the incoming data and the evolving domestic growth-inflation dynamics to chart out the appropriate monetary policy path.Also read: RBI MPC at a glance: Your one-stop guide for all key decisions”Globally, policy makers are faced with muted growth and slowing pace of disinflation, with some advanced economies even witnessing an uptick in inflation. As the dust settles and a new equilibrium emerges in the new global order, policymakers will have a tough task navigating a world characterised by modest growth, sticky inflation and elevated public debt levels,” RBI chief said in the August MPC briefing.After maintaining a status quo in the August MPC meeting, Malhotra said, “We will keep watching incoming data and evolving outlook of our macroeconomic conditions and the MPC will accordingly take a view on the policy from meeting-to-meeting.”Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)

Read More News onrbi repo rate oct 2025rbi mpc meeting highlights25 bps rate cutindia’s monetary policycpi inflation outlookrbi governor sanjay malhotra speechUS tariffsrbi mpc key takeawaysRBI MPC Meeting

(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

(You can now subscribe to our Economic Times WhatsApp channel)Read More News onrbi repo rate oct 2025rbi mpc meeting highlights25 bps rate cutindia’s monetary policycpi inflation outlookrbi governor sanjay malhotra speechUS tariffsrbi mpc key takeawaysRBI MPC Meeting(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories