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RBI holds rates steady, trims inflation forecast amid trade worries
The Business Guardian
|August 07, 2025
The Reserve Bank of India (RBI) kept its policy interest rate unchanged on Wednesday as it appeared to have taken a wait-and-watch approach to assess the full unveiling of US President Donald Trump's trade policies as well as the transmission of past rate cuts.
The six-member rate-setting panel, headed by RBI Governor Sanjay Malhotra, held the repurchase rate at 5.5 per cent in a unanimous vote and decided to continue with a 'neutral' stance.
While on-track monsoon rains and the approaching festival season are expected to provide buoyancy to the economy, global trade challenges continue to linger, Malhotra said, announcing the decision of the Monetary Policy Committee (MPC).
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