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Home > Business > RBI REPO Rates News: No Changes In REPO Rates, Stays Unchanged At 5.5% In August Policy Meet

RBI REPO Rates News: No Changes In REPO Rates, Stays Unchanged At 5.5% In August Policy Meet

RBI REPO Rates Latest News: RBI’s Monetary Policy Committee unanimously holds repo rate at 5.5%, citing easing inflation and positive economic outlook. Retail, wholesale inflation decline, with festival season optimism boosting market sentiment.

Published By: Aishwarya Samant
Last updated: August 6, 2025 12:28:55 IST

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RBI REPO Rates Latest News: The Reserve Bank of India’s Monetary Policy Committee (MPC) has just made a big call — they’re keeping the repo rate steady at 5.5% during their August meeting. RBI Governor Sanjay Malhotra announced this decision on Wednesday, confirming no change under the Liquidity Adjustment Facility. Over three days (August 4th, 5th, and 6th), the MPC carefully studied India’s economic and financial health before reaching this unanimous decision. Remember, they had cut the rate by 50 basis points back in June to tackle easing inflation.

So, why the pause now? Governor Malhotra explained it clearly: “After a detailed assessment of the evolving macroeconomic and financial developments and outlook, the MPC voted unanimously to keep the policy record under the Liquidity Adjustment Facility unchanged at 5.5 percent.” What do you think this means for borrowers and investors like you? Stay tuned — the economic pulse is steady, but the watch continues.

Repo Rate:

  • June 2025: 5.5%

  • May 2025: 5.5%

  • Note: Unchanged after June cut

  • July: 5.5%

Inflation Hits 6-Year Low, Food Prices Drop Sharply

Good news for your wallet—India’s retail inflation has dipped to its lowest level in over six years! According to the Ministry of Statistics, the Consumer Price Index (CPI) for June showed a neat 2.10% year-on-year inflation rate, down by 72 basis points from May 2025. RBI Governor Sanjay Malhotra says, “Both near-term and medium-term inflation levels are now within the RBI’s comfort zone.” What does that mean for you? Simply put, prices aren’t soaring, especially for food. The Consumer Food Price Index (CFPI) actually went negative at -1.06%, dropping in both rural (-0.92%) and urban (-1.22%) areas. So, your grocery bills might just be giving you a little breather. With inflation playing nice, the RBI has some breathing room — making it easier to keep the economy balanced.

Wholesale Inflation Dips Into the Negative Zone—Good News for Your Wallets Again!

Wholesale inflation took a surprising dip in June, sliding to -0.13% from 0.39% in May. Thanks to falling prices in essentials like food, mineral oils, metals, crude petroleum, and natural gas, the price tag on many everyday items is easing up. The Ministry of Commerce and Industry says these drops have helped push wholesale inflation into the red—something the RBI’s Monetary Policy Committee definitely likes to see. This downward trend gave the MPC the green light to keep the repo rate steady, showing confidence that inflation is under control. So, whether you’re a business owner or just shopping for your next festive feast, this stable pricing environment means more breathing room for your budget. Ready to enjoy the savings as the festival season kicks in? Looks like the economy’s set to sparkle along with your celebrations!

Monsoon’s Pouring, Festivals Roaring—India’s Economy Is Ready to Shine!

Governor Malhotra shares some great news: “The monsoon season is progressing well, and the upcoming festival season usually increases economic activity.” That means rain isn’t just watering crops—it’s also fueling a shopping spree! With festivals around the corner, people are ready to spend, celebrate, and boost the economy. Plus, the RBI’s decision to keep the repo rate steady means borrowing won’t burn a hole in your pocket. Businesses can plan, consumers can shop, and everyone can enjoy the festive buzz without worrying about high costs. So, get your festive hats on and wallets ready—India’s economic party is just getting started, and the outlook looks sunny and bright!

Repo Rate at 5.5%: Key Economic Indicators at a Glance

Indicator June 2025 Value May 2025 Value Notes
Repo Rate 5.5% 5.5% Unchanged after June cut
Retail Inflation (CPI) 2.10% (Provisional) 2.82% Lowest since January 2019
Food Inflation (CFPI) -1.06% (Provisional) N/A Soft food prices, rural & urban
Wholesale Inflation (WPI) -0.13% 0.39% Negative due to key sectors

(With Inputs From ANI)

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