The Reserve Bank of India (RBI) maintained the repo rate at 5.50% in its August 2025 monetary policy review, marking the third bi-monthly meeting for fiscal year 2026 (FY26). The central bank retained a neutral stance, opting to pause further rate cuts as policymakers assess the impact of recent easing measures and the risks posed by higher-than-expected US tariffs. RBI Governor Sanjay Malhotra emphasized continued monitoring of macroeconomic conditions on a policy-to-policy basis. The RBI also revised its inflation forecast for FY26 downward to 3.1%, while projecting a rise to 4.9% in the first quarter of FY27. The GDP growth projection for FY26 remains steady at 6.5%. Analysts highlighted the implications of the decision for markets and key sectors, noting the ongoing uncertainties from tariff measures and volatile food prices.