Archive · 15 Sep 2025
RBI Likely to Hold Rates Amidst Growth Despite Inflation
The Reserve Bank of India (RBI) is expected to keep interest rates the same in October.
Even though inflation is within the RBI's target range and some economists think they could lower rates, the economy is growing strongly.
The government also made changes to GST which could help, but there is some worry about rising food prices.
Global events also play a role in the decision.
RBI expected to maintain policy rates in October despite room for easing.
Inflation rose to 2.07% in August, still within RBI's comfort zone.
Strong Q1FY26 GDP growth of 7.8% is a factor in the decision.
GST rate cuts are expected to further ease price pressures.
Food price spikes and global headwinds pose risks to growth.
- Who
- Reserve Bank of India (RBI)
- What
- Decision on policy rates
- When
- October 1st Meeting
- Where
- India
- Why
- To address inflation and economic growth
- Inflation Rate (August)
- 2.07%
- RBI Target Inflation Band
- 2-6%
- Q1FY26 GDP Growth
- 7.8%
- GST Cuts Effect
- Expected to further ease price pressures
Sources
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