RBI Bi-Monthly Monetary Policy 2025: Repo Rate, GDP Growth, and Inflation Forecast

The Reserve Bank of India (RBI), under Governor Sanjay Malhotra, announced its Monetary Policy 2025 on keeping the repo rate unchanged at 5.5% and maintaining the policy stance as ‘Neutral’. The decision was unanimously taken by all MPC members.

The RBI also revised its FY26 GDP growth estimate upwards to 6.8% (from 6.5% earlier) and cut CPI inflation forecast to 2.6% (from 3.1% earlier), signaling optimism on growth with controlled inflationary pressures.

Key Highlights of RBI Monetary Policy 2025

1. Policy Measures

• Repo Rate: Unchanged at 5.50%
• Stance: Neutral
• CRR (Cash Reserve Ratio): 3%
• SDF (Standing Deposit Facility) Rate: 5.25%
• MSF (Marginal Standing Facility) Rate: 5.75%
• Bank Rate: 5.75%
• MPC: Unanimous decision to keep rates unchanged

2. GDP Growth Projections

• FY26 GDP growth estimate revised to 6.8% (from 6.5%).

• Quarterly GDP growth estimates:

1. Q1 FY26: 6.5% (unchanged)
2. Q2 FY26: 7.0% (raised from 6.7%)
3. Q3 FY26: 6.4% (cut from 6.6%)
4. Q4 FY26: 6.2% (cut from 6.3%)

• Q1 FY27: 6.4% (cut from 6.6%).

3. CPI Inflation Forecast

• FY26 CPI inflation forecast: Cut to 2.6% (from 3.1%).

• Quarterly estimates:

1. Q2 FY26: 2.1% (cut from 3.4%)
2. Q3 FY26: 3.1% (cut from 3.9%)
3. Q4 FY26: 4.4% (unchanged)

• Q1 FY27: 4.9%

This indicates an improving inflation trajectory, giving RBI more room to support growth.

4. Developmental and Regulatory Policies

• Re-KYC Camps for Jan Dhan Accounts – Focus on micro insurance and pension scheme enrolments.
• Standardised Procedure for Claim Settlement – For deposit accounts of deceased customers to improve transparency and efficiency.
• RBI Retail Direct Enhancements – Introduction of Auto-bidding facility for investments and reinvestments in T-bills.