By Nitin Waghela

Copyright republicworld

Declaring the RBI MPC October meeting decision, RBI Governor Sanjay Malhotra on Wednesday, October 1, said the MPC unanimously decided to “keep the repo rate unchanged” at 5.5 per cent and retained the “neutral” stance. This decision was in line with market expectations and comes amid stronger growth prospects, especially when inflation stands within RBI’s permissible limits.“India’s consumer price inflation rose to 2.07 per cent in August 2025 from 1.61 per cent in July, marking the first monthly increase in ten months. Despite this uptick, inflation remains below the RBI’s 4% target and within its prescribed tolerance band,” Bajaj Broking said.Meanwhile, Malhotra also announced that the Real GDP growth for the current fiscal year has been revised upwards to 6.8 per cents from the earlier estimate of 6.5 per cent.Further, the RBI Governor noted that the “average headline inflation has been revised” and was lowered from 3.7 per cent in June, 2.6 per cent in September 2025. “Since the August policy meeting, significant developments on the domestic front amidst a fast-changing global economic landscape have altered the narrative on growth inflation dynamics in India. Buoyed by a good monsoon, the Indian economy continues to exhibit strength by registering a higher growth in Q1,” he said. During the RBI MPC outcome announcement, he also noted that, “Headline inflation for Q4 this year and Q1 next year too has been revised downwards and is broadly aligned with the target despite unfavourable base effects. Core inflation for the year and Q1 next year is also expected to remain contained… Moreover, prevailing global uncertainties and tariff-related developments are likely to decelerate growth in H2 this year and beyond. The current macroeconomic conditions and the outlook has opened up policy space for further supporting growth… The trade-related uncertainties are also unfolding.”Sharing his take on the RBI MPC announcement, Rohit Garg, CEO, Olyv, said, “For NBFCs and fintech lenders alike, the policy outcome directly influences the cost of funds and ultimately the affordability of credit for retail and small business borrowers.”He further noted, “While retail inflation has eased, supported by GST rationalisation and stable commodity prices, global volatility and the pace of domestic growth keep the outlook finely balanced.”The October MPC meeting was held from September 29 to October 1. The following meetings for FY26 are slated for December 3-5 and February 4-6, 2026.