During its 57th Monetary Policy Committee (MPC) meeting, held from September 29 to October 1, 2025, the Reserve Bank of India adopted a balanced, growth-oriented approach while staying committed to price stability.
Here are the key highlights with implications for markets, borrowers, and the broader economy.
RBI keeps repo rate stable at 5.50%: “The RBI opted to keep the policy repo rate unchanged at 5.50%, indicating that current economic conditions call for stability rather than any shift towards easing or tightening.
Favoured Neutral Stance: The MPC reiterated its ‘neutral’ policy approach, signaling that future monetary decisions will remain data-dependent and measured, with no abrupt shifts unless justified by economic conditions.
Regulatory reform drive: RBI unveiled comprehensive regulatory changes aimed at simplifying banking regulations, enhancing credit accessibility, and strengthening the resilience of the financial sector.
Steps to promote Indian Rupee at Global Level: RBI introduced new policies to encourage the rupee’s adoption in cross-border trade and transactions, with the goal of reducing reliance on foreign currencies and enhancing monetary sovereignty.
GDP forecast raised to 6.8%: Reflecting strong domestic demand, the RBI revised its real GDP growth projection for FY 2025–26 upward to 6.8%, signaling confidence in the economy’s growth momentum.
Ease of Doing Business: A large number of circulars and directions totaling about 9000, have been consolidated, subject wise, across 11 types of regulated entities. Drafts of the same to be issued for public consultation.
Safeguarding consumer interest: Enhanced digital banking services for basic savings accounts, improved ombudsman systems, and inclusion of rural cooperative banks under regulatory coverage.
As per State Bank of India, Economic Research Report by Group Chief Economic Advisor Dr Soumya Kanti Ghosh says, it is not a “monetary policy alone, but a regulatory policy too.
