Repo Rate Holds Steady Amidst Global Trade Jitters
The Reserve Bank of India (RBI) on Wednesday, August 6, 2025, decided to maintain the repo rate at 5.5 percent. This decision comes amidst considerable global trade uncertainty and a careful assessment of the impact of previous rate cuts.
The RBI’s projection for Consumer Price Index (CPI) inflation for the current fiscal year stands at 3.1 percent. However, the central bank acknowledges a potential rise above 4 percent.
Despite the looming threat of US tariffs, the RBI anticipates minimal inflationary pressure. The central bank remains optimistic about India’s economic growth, projecting it to surpass 6.5 percent.
This strategic move by the RBI reflects a cautious approach to navigating the complex interplay of global economic headwinds and domestic growth prospects. The decision will undoubtedly have a significant impact on borrowing costs for businesses and individuals, shaping the trajectory of India’s economic landscape in the coming months.
