MONETARY POLICY DECISION: RBI keeps rates unchanged

STC NEWS MONITORING DESK
MUMBAI, OCTOBER 01 (STC): The Reserve Bank of India (RBI) has announced its monetary policy decision today. The repo rate has been kept unchanged at 5.50% and maintained the policy stance as ‘Neutral’. This marked the second consecutive pause following a cumulative 100 basis point (bps) rate cut earlier in the year.
Notably, the fourth bi-monthly meeting of the Monetary Policy Committee (MPC) for FY26, chaired by RBI Governor Sanjay Malhotra, was held from September 29 to October 1, and the repo rate decision was announced today.
All MPC members voted in favour of maintaining the repo rate unchanged and retaining the stance as “neutral.” The Standing Deposit Facility (SDF) rate remains at 5.25%, while the Marginal Standing Facility (MSF) rate continues at 5.75%.
The RBI raised FY26 GDP growth estimates to 6.8% from 6.5% earlier, and also reduced FY26 CPI inflation forecast to 2.6% from 3.1% earlier.
RBI Governor also proposed a slew of measures for banking sector to improve flow of credit into the system, reduce cost of infrastructure financing by NBFCs, measures for internationalising Indian Rupee, strengthen export sector, simplify foreign exchange management and enhance consumer satisfaction.
(Straight Talk Communications)