Repo Rate Holds Steady: A Calculated Pause by RBI

The Reserve Bank of India’s Monetary Policy Committee (MPC) concluded its meeting on Wednesday, August 6, 2025, with a decision to maintain the policy repo rate unchanged. This move has been largely welcomed by economists across the country.

Experts see this as a strategic pause, a balanced approach given the current economic climate. The prevailing inflation levels and the need to support sustained growth appear to have influenced the MPC’s decision.

The stability offered by this decision is expected to provide some relief to borrowers and businesses. However, the RBI’s continued vigilance on inflation will be crucial in the coming months.

This calculated move by the RBI will be closely scrutinised for its impact on various sectors, particularly housing and consumer spending. The coming months will reveal whether this pause was indeed the right prescription for India’s economy.