RBI MPC August 2025: FD Rates Will Not Go Down As Repo Rate Remains Unchanged At 5.5%

The Reserve Bank of India (RBI) announced its monetary policy on august 6, 2025 and this was the third bi-monthly Monetary Policy Committee (MPC) meeting for FY26, which was chaired by the RBI Governor Sanjay Malhotra.

One of the major decisions to come out of this meeting is that the MPC has decided to keep the repo rate unchanged at 5.5%, having already frontloaded easing through both a rate cut and a 100 bps CRR reduction earlier this year. The central bank's policy stance is also remains ‘Neutral’.

What Does This Mean?

As a result of the unchanged repo rate, the standing deposit facility (SDF)rate under the liquidity adjustment facility (LAF) remains unchanged at 5.25% and the marginal standing facility (MSF) rate and the Bank Rate at 5.75%.

This decision has been made in line with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth.

RBI MPC: FD Rates TO Stay Unaffected

After cutting 100 basis points (bps) between February and June, the central bank has now opted to wait and watch.

This pause also comes das before the US imposes steep tariffs on Indian imports, adding fresh uncertainty to India's external trade outlook.

According to Sugandha Sachdeva, Founder of SS WealthStreet, "On the growth front, the RBI retained its real GDP growth projection at 6.5% for FY 2025-26, supported by strong domestic demand, improving capacity utilization, favorable monsoon conditions, and benign inflationary trends. This robust projection significantly outpaces the global growth forecast of 3–3.1%, highlighting India’s relative macroeconomic resilience.

Additionally, for depositors, especially senior citizens, this may be the last leg of high returns. Many banks are still offering more than 7.25% on select tenures, with an extra 25–50 basis points for seniors. But if rate cuts resume later this year, new FD offers could start falling.

Also Read: RBI MPC August 2025: Repo Rate Unchanged, Inflation Projection Slashed - Key Highlights Revealed