US EditionSensex jumps over 400 points after RBI keeps rates unchanged. Why is the Indian stock market rising? EXPLAINED
RBI maintains repo rate at 5.5% citing steady growth and inflation easing to 2.6%, supported by GST reforms and good monsoon, with GDP forecast raised to 6.8%.
- On October 1, 2025, the Reserve Bank of India's Monetary Policy Committee unanimously kept the repo rate steady at 5.5% and maintained a neutral stance.
- This decision followed three rate cuts totaling 100 basis points between February and June 2025 amid robust domestic demand and recent easing of headline inflation.
- The MPC highlighted that inflation has moderated significantly due to the rationalisation of GST rates and easing food prices, despite global uncertainties and trade-related headwinds.
- RBI projected real GDP growth for 2025-26 at 6.8%, up from 6.5%, and lowered the CPI inflation forecast to 2.6%, with inflation remaining within the 2–6% target band, while growth in H2 FY26 could slow from global risks.
- The stable policy rate signals RBI's focus on supporting steady growth while monitoring evolving inflation and global uncertainties that may affect external demand and trade outlook.
30 Articles
30 Articles
Stock Market Zooms: Trading in the stock market started slowly on Wednesday, but after the Reserve Bank announced the results of the MPC meeting, Sensex-Nifty suddenly started running at rocket speed.
RBI revises GDP growth projection to 6.8%, cuts inflation to 2.6% - Here's what it means
The Reserve Bank of India’s Monetary Policy Committee (MPC) has maintained the status quo on its repo rate by keeping it unchanged at 5.5 per cent for the second consecutive time, citing concerns over tariff uncertainties. RBI Governor Sanjay Malhotra also said the MPC unanimously decided to keep the short-term lending rate or repo rate unchanged at 5.5 per cent with a neutral stance. Stating that GST rate rationalisation will have a sobering im…
Sensex jumps over 400 points after RBI keeps rates unchanged. Why is the Indian stock market rising? EXPLAINED
On October 1, the Indian stock market saw strong buying across segments after the RBI's MPC decided to maintain the repo rate and policy stance unchanged for the second consecutive meeting, following a 50 basis point cut in June.
Coverage Details
Bias Distribution
- 55% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
