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RBI Monetary Policy Rate: Key highlights (6 August ,2025)
The broad consensus was that the Monetary Policy Committee (MPC) was going to maintain the status quo on the policy rates and stance in its second bi-monthly policy review meeting for FY26. This is what transpired, making it the seventh consecutive instance of a pause by the Committee.
Important Highlights of the monetary Policy:
Following are the highlights of the bi-monthly monetary policy announced by the Reserve Bank of India Governor Sanjay Malhotra on 6th August 2025:
GDP Growth Estimates:
RBI maintains real GDP growth estimates for FY26 at 6.5%. Here are the quarterly estimates:
- Q1FY26: 6.5%
- Q2FY26: 6.7%
- Q3FY26: 6.6%
- Q4FY26: 6.3%
- GDP growth estimates for Q1FY27 is at 6.6%
CPI Inflation Forecast
RBI cuts FY26 CPI inflation forecast to 3.1% from 3.7% earlier. The quarterly estimates are:
- Q2FY26: Cut to 2.1% from 3.4%
- Q3FY26: Cut to 3.1% from 3.9%
- Q4FY26: Maintained at 4.4%
- CPI inflation estimates for Q1FY27 is at 4.9%
Current Policy Rate: Last Updated on 6 August 2025
| Policy | Rates |
| Repo Rate | 5.5% |
| Reverse Repo Rate | 3.35% |
| Marginal Standing Facility (MSF) Rate | 5.75% |
| Bank Rate | 5.75% |
| Cash Reserve Ratio | 4% |
| Statutory Liquidity Ratio (SLR) | 18% |
| Standing Deposit Facility Rate | 5.25% |
RBI Repo Rate History
RBI Repo Rate History
| Date | Rate | Change |
| 9 April 2024 | 6 | 0.25 |
| 7 Feb 2025 | 6.25 | 0.25 |
| 8 Feb 2023 | 6.50 | 0.25 |
| 7 Dec 2022 | 6.25 | 0.35 |
| 30 Sept-22 | 5.9 | 0.5 |
| 5-Aug-22 | 5.4 | 0.5 |
| 8-Jun-22 | 4.9 | 0.5 |
| May-22 | 4.4 | 0.4 |
Q.1. What is the Repo rate after the MPC held?
Ans. 6%
Q.2. What is the RBI’s 2025-26 GDP growth Projection of India?
Ans. 6.5%
CRR – Cash Reserve Ratio – Banks in India are required to hold a certain proportion of their deposits in the form of cash. However Banks don’t hold these as cash with themselves, they deposit such cash(aka currency chests) with Reserve Bank of India , which is considered as equivalent to holding cash with themselves. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR or Cash Reserve Ratio.
SLR – Statutory Liquidity Ratio – Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR). RBI is empowered to increase this ratio up to 40%. An increase in SLR also restricts the bank’s leverage position to pump more money into the economy.
Note-The maximum limit of SLR is 40% and minimum limit of SLR is 0 In India
MSF – Marginal Standing facility – It is a special window for banks to borrow from RBI against approved government securities in an emergency situation like an acute cash shortage. MSF rate is higher then Repo rate.
Bank Rate – This is the long term rate(Repo rate is for short term) at which central bank (RBI) lends money to other banks or financial institutions. Bank rate is not used by RBI for monetary management now. It is now same as the MSF rate.
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term.
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