What happened: RBI’s August MPC kept the repo rate at 5.25% for the fourth straight meeting
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged in its August meeting. RBI maintained the repo rate at 5.25% for the fourth consecutive meeting.
RBI justified the policy pause by pointing to crude-price-driven inflation pressure and the limited scope for further rate changes while balancing growth support.
RBI used a key inflation figure in its decision context:
RBI reported that headline Consumer Price Index (CPI) rose to 4.38% in June—described as the highest in the current series—and kept the repo rate at 5.25%.
Background and earlier position: RBI’s strategy emphasised liquidity and FX resilience during geopolitical uncertainty
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