Daijiworld Media Network- New Delhi

New Delhi, Aug 6: The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday, August 6, announced that the repo rate will remain unchanged at 5.5%, keeping in line with broad market expectations. The committee also decided to retain its ‘neutral’ monetary stance.

The three-day meeting of the rate-setting panel concluded with a unanimous decision, coming after a 50 basis point rate cut in its June review. The move follows growing global uncertainty, especially after fresh threats of trade penalties by US President Donald Trump.

Bloomberg’s pre-policy poll of economists had also suggested a pause on rate changes, despite mixed domestic economic indicators and easing inflationary pressures. The RBI’s cautious approach is seen as a response to evolving risks — both domestic and international.

Notably, President Trump last week imposed a 25% tariff on India, citing the country’s ongoing oil trade with Russia and military purchases. On Tuesday, he further threatened to “substantially” hike tariffs within 24 hours — a development that could have serious implications for India’s external trade and growth outlook.

RBI Governor Shaktikanta Das, while addressing the press, said the central bank continues to monitor inflation trends and global headwinds. Economists believe lingering trade tensions may push the RBI to consider further easing in the coming quarters if growth risks persist.

Meanwhile, the central bank retained its GDP projections, expecting the economy to grow at 6.5% in Q1 FY26, followed by 6.7% in Q2 and 6.6% in Q3. The first quarter of the next fiscal is also expected to see 6.6% growth.

The RBI’s stance signals a watchful approach as India navigates through external turbulence and strives to maintain economic stability.