RBI MPC meet: What stayed the same, what changed in October policy review

RBI's Monetary Policy Committee kept repo rate unchanged at 5.50 per cent; the MPC retained its policy stance as 'neutral'

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday decided to keep all key policy rates unchanged in its October review, following significant changes in earlier meetings this year.

 

RBI MPC: What remains the same

• The policy repo rate remains unchanged at 5.50 per cent

• The MPC retained its policy stance as ‘neutral’

• The Standing Deposit Facility (SDF) rate remained unchanged at 5.25 per cent, and the Marginal Standing Facility (MSF) rate and bank rate stayed unchanged at 5.75 per cent

 

RBI MPC meet: What has changed

• CPI-inflation projections for FY26 have been revised further downward: FY26 CPI is now forecast at 2.6 per cent, down from 3.1 per cent in August and from 3.7 per cent in June 2025.     

 

RBI MPC meet: Key rates

 

Repo rate

Previous MPC (August 2025): 5.50 per cent

Current MPC (October 2025): 5.50 per cent (unchanged)

 

CPI inflation  

Previous MPC (August 2025): 3.1 per cent projection for FY26

Current MPC (October 2025): 2.6 per cent projection for FY26

 

GDP growth      

Previous MPC (August 2025): 6.5 per cent projection for FY26

Current MPC (October 2025): 6.8 per cent projection for FY26 

 

The quarterly inflation forecast stands as follows:

Q2FY26: Cut to 1.8 per cent from 2.1 per cent

Q3FY26: Cut to 1.8 per cent from 3.1 per cent

Q4FY26: Cut to 4.0 per cent from 4.4 per cent

CPI inflation estimates for Q1FY27 reduced to 4.5 per cent from 4.9 per cent

 

The quarterly GDP forecast stands as follows:

Q2FY26: Raised to 7 per cent from 6.7 per cent

Q3FY26: Cut to 6.4 per cent from 6.6 per cent

Q4FY26: Cut to 6.2 per cent from 6.3 per cent

GDP growth estimates for Q1FY27 cut to 6.4 per cent from 6.6 per cent   The MPC’s next meeting is scheduled for December 3-5, 2025.