In the August 4-6 policy review, the Monetary Policy Committee (MPC) headed by the Governor Sanjay Malhotra unanimously voted to keep the policy repo rate unchanged at 5.50%.

Key Highlights

• RBI’s MPC unanimously holds repo rate steady at 5.50%, maintaining neutral stance amid global uncertainties.
• Central bank keeps SDF at 5.25%, MSF and Bank Rate at 5.75% after three cuts earlier in 2025.

The position was maintained on a neutral stand implying that the RBI was willing to make changes in future policies subject to the changing dynamics of inflation and growth rates.

Also, The Standing Deposit Facility (SDF) remained at 5.25%. There is no change in the Marginal Standing Facility (MSF) rate or the Bank Rate which stands at 5.75%.

Also Read: Developers Eye August MPC Meet: Will RBI Cut Rates Again or Hit Pause?

The moves follow three rate cuts earlier this year, totaling 100 basis points, with a 50 bp so-called jumbo cut in June, when the MPC shifted its policy bias to neutral.

The decision by RBI is indicative of its moderate tightrope walk of tethering inflation, recently down to a six-year low of around 2.10 percent as of June, keeping a hawkish eye on slowing growth figures and other external risks including trade tensions.