RBI Repo Rate Cut, RBI Monetary Policy Meeting August 2025 Today Live Updates: The Reserve Bank of India’s (RBI) six-member Monetary Policy Committee (MPC) is expected to announce its monetary policy — the third bi-monthly one for FY26 — today. Experts are of the view that the RBI Governor Sanjay Malhotra-led committee may keep the repo rate unchanged after slashing it by a bigger-than-expected 50 basis points (bps) in June. With a total cut of 100 bps between February and June this year, the repo rate currently stands at 5.5 per cent.
FY26 inflation projection: The August policy announcement on Wednesday comes after the MPC meeting from August 4 to 6. It was held amid the ongoing rising uncertainties around trade tariffs triggered by US President Donald Trump as well as moderation in headline inflation. If it continues to frontload cuts, a 25 bps cut is not ruled out, say economists including State Bank of India’s group chief economic advisor Soumya Kanti Ghosh. The MPC is also expected to revise inflation projection for FY26 downward. Further, the RBI may retain its forecast for real gross domestic product (GDP) growth for the current year.
Story continues below this ad
Repo rate value: Now, the interest rate that the central bank charges when commercial banks borrow money from it is called the repo rate. The interest rate the RBI pays commercial banks when they park their excess cash is called the reverse repo rate. When the RBI wants to encourage economic activity in the economy, it reduces the repo rate to enable commercial banks to bring down the interest rates they charge (on their loans) as well as the interest rate they pay on deposits. This, in turn, incentivises people to spend money.
© IE Online Media Services Pvt Ltd
