RBI’s 3rd bi-monthly MPC meeting 2025

Current Context: The RBI’s 3rd bi-monthly Monetary Policy Committee meeting was held from August 4–6, 2025, with the policy announced on August 6.

• It was chaired by Governor Sanjay Malhotra and included six members—three from RBI and three external experts.

Key Highlights:

• Repo Rate: 5.50% (unchanged)
• Reverse Repo Rate: 3.35%
• Standing Deposit Facility (SDF): 5.25%
• Marginal Standing Facility (MSF): 5.75%
• Bank Rate: 5.75%
• Cash Reserve Ratio (CRR): 3.00%
• Statutory Liquidity Ratio (SLR): 18.00%
• Policy Stance: Neutral
• Decision: Unanimous vote to maintain current rates

Economic Projections

• GDP Growth Forecast (FY26): Retained at 6.5%
• Q1: 6.5%, Q2: 6.7%, Q3: 6.6%, Q4: 6.3%
• CPI Inflation Forecast (FY26): Revised down to 3.1% (from 3.7%)
• Q2: 2.1%, Q3: 3.1%, Q4: 4.4%
• Q1 FY27: Projected at 4.9%

Developmental Measures

• Auto-bid facility launched on Retail Direct portal for T-Bills (investment & reinvestment)
• Re-KYC camps for Jan Dhan accounts to promote micro-insurance & pensions
• Standardised claim settlement for deceased customers’ accounts & lockers
• Global Caution
• RBI flagged risks from US tariffs, currency volatility, and external headwinds

Question:

Q.1 What is the Repo Rate (Repurchase Rate) announced in the August 2025 MPC meeting?
a) 5.25%
b) 5.50%
c) 5.75%
d) 3.35%

Answer: b) The Repo Rate is the rate at which the Reserve Bank of India lends money to commercial banks. It was kept unchanged at 5.50%.