RBI MPC Meeting 2025: Reserve Bank of India Governor Sanjay Malhotra today informed about the decision taken in the three-day meeting of the RBI Monetary Policy Committee. In the meeting, it was decided not to cut the repo rate.
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RBI MPC Meeting 2025: The Reserve Bank of India (RBI) has not made any change in the repo rate and has maintained it at 5.50 percent. After a three-day meeting of the Monetary Policy Committee (MPC), today on August 6, RBI Governor Sanjay Malhotra announced the decisions taken in the meeting. In the last MPC meeting, the repo rate was cut by 50 basis points (bps). RBI had also cut the repo rate by 25-25 basis points in February and April.
The repo rate is the rate at which RBI lends to banks. When the repo rate is low, it becomes cheaper for banks to take loans and they are able to give loans to customers at a lower interest rate. Loans like home and car loans become cheaper due to the reduction in the repo rate.
Decision taken unanimously
RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged, while it was cut by 100 basis points earlier this year. He further said that inflation is likely to increase further.
The RBI Governor said that core inflation remains stable at 4%. At the same time, inflation is rising in many developed countries. Better than normal southwest monsoon and other favorable conditions are continuously supporting economic growth.
Inflation forecast for FY26 reduced
RBI has changed its forecast regarding inflation. While earlier inflation was estimated to be 3.7 percent in FY26, now it has been reduced to 3.1 percent. This shows that prices in the country may remain relatively stable, especially due to better than normal monsoon and improvement in supply. The new inflation estimates on a quarterly basis are as follows:
The second quarter (Q2FY26) estimate was earlier 3.4%, now it has been reduced to 2.1%.
The third quarter (Q3FY26) estimate was reduced from 3.9% to 3.1%.
The fourth quarter (Q4FY26) estimate has been retained at 4.4% as before.
