RBI Monetary Policy 2025: Central Bank Keeps Key Interest Rates Unchanged At 5.50%

New Delhi: Contrary to widespread expectations of a rate cut, the Reserve Bank of India (RBI) kept the key interest rates unchanged on Wednesday. 

The Monetary Policy Committee has unanimously decided to keep the repo rates unchanged at 5.50 percent, RBI Governor Sanjay Malhotra said, while announcing the August 2025 bi-monthly monetary policy.

Economists had opined that there were strong reasons why the RBI might consider another rate cut of at least 25 bps  -- upcoming US tariffs likely affecting exports and slow down the overall economic activity -- being among the most obvious ones.

The latest SBI Research report also mentioned that the RBI might go for a 25 bps reductionn in repo rates in light of soft inflation and global uncertainties — aiming to reinforce growth momentum while it has a policy window.

In the last MPC meeting held on April 7, 8, and 9, the RBI had already reduced the repo rate by 25 basis points, bringing it down from 6.25 percent to 6 percent. This was the second consecutive rate cut by the RBI. Earlier in February, the central bank had also slashed the repo rate by 25 basis points, from 6.5 per cent to 6.25 per cent, showing a clear shift toward a more accommodative policy approach.

With inflation easing and two back-to-back rate cuts already made, the RBI rate cut was much in tandem with market expectations.