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RBI Holds Rates, Hints at Further Easing Ahead
15 Oct, 2025
Summary
- RBI maintains monetary policy rate and stance in October
- Inflation below RBI's tolerance level, but no rate cut
- Dovish tone suggests possible rate cut as early as December
On October 15, 2025, the Reserve Bank of India (RBI) has opted for a wait-and-watch policy on its monetary policy, maintaining its current stance. This decision comes despite the fact that inflation has been trending at less than the lower bound of the RBI's tolerance level, and expectations are for a 2.6% inflation rate for the fiscal year 2026.
The RBI's report, released on the same day, suggests that the bank's dovish tone signals the possibility of further easing in the near future. However, the report also notes that the depth of any further rate cuts may be extremely limited, and the RBI may want to retain its policy ammunition for now.
While the RBI did not alter its monetary policy rate and stance at its last meeting in October, the report indicates that a rate cut as early as December is not out of the question. The decision will ultimately depend on the prevailing growth conditions, but the RBI's current stance suggests that it is leaning towards providing additional support to the economy through further easing.
