Archive · 25 Jul 2025
RBI Declares Inflation Battle Won, but Cautious on Future Policy
The Reserve Bank of India (RBI) says it has largely won the fight against rising prices, as inflation is now at a low level.
The RBI aims to keep inflation around 4%.
The central bank recently lowered interest rates to help the economy.
The head of RBI, Sanjay Malhotra, says that while inflation is under control, they must remain careful.
The next decisions will be announced on August 6.
The RBI has a neutral stance, so they can adjust rates up or down based on the situation.
RBI Governor Sanjay Malhotra declared the 'battle against inflation' won.
Headline inflation hit 2.10% in June 2025, the lowest since January 2019.
The RBI's inflation target is 4%, with a +/- 2% tolerance.
The Monetary Policy Committee (MPC) reduced the benchmark lending rate by 50 basis points.
RBI shifted stance to 'neutral,' suggesting limited further easing.
- Who
- RBI Governor Sanjay Malhotra.
- What
- RBI Governor declared the 'battle against inflation' won, but with caution.
- When
- The announcement was made on Friday regarding the current economic status and future policy.
- Where
- Mumbai, at a banking summit.
- Why
- To address current retail inflation and outline the central bank's approach to maintain price stability.
Those advocating for further easing
The Reserve Bank of India (RBI)
Further rate cuts
Those advocating for further easing
Suggesting at least one more rate cut this year is needed.
The Reserve Bank of India (RBI)
The central bank maintains a neutral stance due to current conditions.
- Inflation Rate (June 2025)
- 2.10%
- RBI Inflation Target
- 4%
- Tolerance Range
- +/- 2%
- MPC Rate Cut
- 50 basis points
- MPC Stance
- Neutral
- Next MPC Decision
- August 6