In its October 2025 review, the Reserve Bank of India’s Monetary Policy Committee decided to hold the repo rate steady at 5.50 percent, citing heightened global uncertainty - especially around recent tariff actions by former U.S. President Trump.

Earlier this year, the RBI had cut its policy rate by a cumulative 100 basis points, including a 50-basis-point reduction in June. That easing cycle aimed to support domestic demand and cushion growth under external headwinds.

Governor Sanjay Malhotra described the pause as prudent, allowing time to assess the transmission of earlier cuts while monitoring inflation, currency pressures, and the trade outlook. The MPC maintained a neutral policy stance and raised the FY 2025–26 growth projection to 6.8 percent, while revising inflation expectations downward to about 2.6 percent. 

The RBI’s decision signals caution: while room exists for future easing, the timing will depend heavily on how global trade shockwaves and domestic price dynamics evolve.