RBI / research · Reserve Bank of India · 2025-10

RBI Bulletin October 2025 - Monetary Policy Statement and economy review (GST rationalisation and inflation)

The October 2025 Bulletin carries the Monetary Policy Committee's resolution and economic review that followed the September 2025 GST rate rationalisation. The MPC judged that the cuts would ease inflation while supporting consumption and growth. Together with sharply lower food prices, this led the RBI to lower its projection for average headline inflation in 2025-26. It is the main official RBI assessment of how the GST 2.0 rate changes affect prices.

Read the official report →All GST reports

Key findings and recommendations

  • The MPC expected GST rationalisation to pull inflation down and support demand.
  • Lower GST rates were one reason the 2025-26 headline inflation projection was cut to 2.6 per cent.
  • Later bulletins expected inflation to pick up from Q4 2025-26 on base effects, despite the easing from GST.

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