With reference to the RBI's monetary policy announcement in August 2025, consider the following statements:
1. The Monetary Policy Committee unanimously decided to keep the repo rate unchanged at 5.50%.
2. The RBI increased its CPI inflation forecast for FY26 due to rising food prices.
Which of the statements given above is/are correct?

Question

Accepted Answer

a) 1 only — Statement 1 is correct as the MPC unanimously kept the repo rate at 5.50%. Statement 2 is incorrect because the RBI sharply reduced its CPI inflation forecast for FY26 from 3.7% to 3.1% citing cooling food inflation.

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