The Reserve Bank of India has kept the repo rate unchanged at 5.5%. This move has signalled the RBI’s neutral monetary policy stance. RBI Governor and head of the RBI Monetary Policy Committee, Sanjay Malhotra announced the policy on October 1. Most of the economists expected the repo rate to stay at 5.5%. Lower inflation could allow for rate cuts, but risks from US tariffs and GST-related disruptions make policymakers cautious. However, rates may be eased later this year.

Sanjay Malhotra highlighted that India’s GDP is now projected to grow at 6.8%. This growth was earlier forecasted of 6.5%. He also added that this reflects stronger economic momentum, supported by robust domestic demand and favourable policy measures.

What RBI Governor Sanjay Malhotra Said

“Ongoing tariff and trade po

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