RBI Holds Repo Rate at 5.50%, Signals Potential December Cut Amid Trade Concerns

On October 1, 2025, the Reserve Bank of India (RBI) maintained its repo rate at 5.50%, citing global trade uncertainties, particularly U. S. tariffs. The Monetary Policy Committee unanimously agreed on this neutral stance while lowering the inflation forecast for FY26 to 2.6% and raising GDP growth expectations to 6.8%. The RBI's regulatory measures aim to enhance lending and promote the rupee's international use, potentially influencing capital flows and economic activity.