The Reserve Bank of India kept the repo rate unchanged at 5.25% and retained a neutral stance, citing a favourable macroeconomic environment. With inflation projected at 2.1% for FY26 and GDP growth expected at 7.4%, the central bank opted for a cautious pause to allow the impact of earlier rate cuts to transmit fully. The decision ensures stability in borrowing costs and EMIs while preserving policy flexibility to respond to risks such as global uncertainty, crude oil volatility, and potential inflationary pressures.
Click to View MoreRetail inflation in India fell to a 99-month low of 1.54% in September 2025, mainly due to falling food and fuel prices. This marks the lowest level since 2017 and is below the RBI’s 2–6% comfort range. While consumers benefit from lower prices and improved purchasing power, persistently low inflation may signal weak demand and affect farmers’ income.
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