The Reserve Bank of India (RBI) has kept its repo rate unchanged at 5.5%. RBI Governor Sanjay Malhotra announced this decision on October 1, 2025, following a three-day meeting of the Monetary Policy Committee (MPC). This marks the second consecutive time that the RBI has refrained from altering interest rates.This decision ensures that EMIs for home loans and other retail loans will remain unchanged, providing relief to the public. The MPC has maintained its "neutral" policy stance.read also: US Government Shuts Down Amid Political and Fiscal Crisis.!

Governor Malhotra stated that GST reforms will have a moderate impact on inflation while boosting consumption and economic growth.Due to a decline in food prices, the inflation forecast has been lowered from 3.1% to 2.6%. Malhotra noted, "The overall inflation outlook is favorable. The decline in food prices has brought CPI (retail inflation) under control, and the effects of previous policy measures are evident."read also: India: Sharp Rise in Gold Prices, Investment Outlook Dims! How Much is the Increase Today?

However, he cautioned that global uncertainties and tariff-related disruptions could slightly slow economic growth in FY 2025-26. Therefore, the MPC has decided to assess the impact of the current policy before taking further steps.The RBI has revised its GDP growth forecast for FY 2025-26 from 6.5% to 6.8%. Quarterly growth projections show an increase for Q2 FY26 from 6.7% to 7.0%. However, Q3 FY26 growth has been lowered from 6.6% to 6.4%, and Q4 FY26 from 6.3% to 6.2%. For Q1 FY27, growth is estimated at 6.4%, down from 6.6%.read also: India: Sharp Rise in Gold Prices, Investment Outlook Dims! How Much is the Increase Today?

These projections signal economic stability but highlight some pressure from global market disruptions.The RBI has also reduced its retail inflation (CPI) forecast for FY 2025-26 to 2.6%, down from 3.1%. The decline in food prices is the primary reason for this reduction. Quarterly inflation forecasts are as follows: Q2 FY26 at 1.8% (previously 2.1%), Q3 FY26 at 1.8% (previously 3.1%), Q4 FY26 at 4.0% (previously 4.4%), and Q1 FY27 at 4.5% (previously 4.9%). This lower inflation is expected to provide stable prices for consumers.SGF11 Women's Kanjivaram Pure Soft Silk Saree With Unstitched Blouse Piece