It's status quo from RBI: MPC keeps repo rate unchanged at 5.5%, maintains neutral stance
This means no immediate change in loan EMIs for homebuyers, car owners, or businesses, and fixed deposit interest rates will stay stable
- Oct 1, 2025,
- Updated Oct 1, 2025 10:10 AM IST
The Reserve Bank of India’s Monetary Policy Committee (MPC) has voted unanimously to keep the repo rate unchanged at 5.5% and maintain its “neutral” policy stance, signalling a wait-and-watch approach amid steady inflation and cautious growth.
This means no immediate change in loan EMIs for homebuyers, car owners, or businesses, and fixed deposit interest rates will stay stable. The RBI’s decision follows a series of rate cuts earlier in 2025 that aimed to boost demand during a period of subdued economic activity.
RBI Governor Sanjay Malhotra stated that the growth-inflation dynamics have shifted since the August policy review, with recent GST rationalisation expected to have a dampening effect on inflation. However, he cautioned that higher tariffs could weigh on export growth in the coming quarters.
A neutral stance gives the RBI flexibility to move in either direction, depending on future data. If inflation softens further or growth falters, rate cuts could return. Conversely, any spike in prices could prompt tightening.
For investors, the status quo offers clarity. Stock markets tend to prefer rate stability over surprise moves, and sectors like housing, auto, and banking may benefit from a steady outlook. Debt mutual funds, while unlikely to gain from falling rates in the short term, are expected to deliver consistent returns.
There’s no direct benefit for consumers just yet—loan interest rates and EMIs won’t drop further, and FD returns stay where they are. But the MPC’s pause gives the central bank time to assess festival season demand and the full impact of earlier tax cuts.
Analysts are closely watching the December policy review for signs of a shift. For now, the RBI appears comfortable letting past rate cuts play out while remaining nimble if the economy or inflation surprises.
The Reserve Bank of India’s Monetary Policy Committee (MPC) has voted unanimously to keep the repo rate unchanged at 5.5% and maintain its “neutral” policy stance, signalling a wait-and-watch approach amid steady inflation and cautious growth.
This means no immediate change in loan EMIs for homebuyers, car owners, or businesses, and fixed deposit interest rates will stay stable. The RBI’s decision follows a series of rate cuts earlier in 2025 that aimed to boost demand during a period of subdued economic activity.
RBI Governor Sanjay Malhotra stated that the growth-inflation dynamics have shifted since the August policy review, with recent GST rationalisation expected to have a dampening effect on inflation. However, he cautioned that higher tariffs could weigh on export growth in the coming quarters.
A neutral stance gives the RBI flexibility to move in either direction, depending on future data. If inflation softens further or growth falters, rate cuts could return. Conversely, any spike in prices could prompt tightening.
For investors, the status quo offers clarity. Stock markets tend to prefer rate stability over surprise moves, and sectors like housing, auto, and banking may benefit from a steady outlook. Debt mutual funds, while unlikely to gain from falling rates in the short term, are expected to deliver consistent returns.
There’s no direct benefit for consumers just yet—loan interest rates and EMIs won’t drop further, and FD returns stay where they are. But the MPC’s pause gives the central bank time to assess festival season demand and the full impact of earlier tax cuts.
Analysts are closely watching the December policy review for signs of a shift. For now, the RBI appears comfortable letting past rate cuts play out while remaining nimble if the economy or inflation surprises.