The Reserve Bank of India (RBI) will announce the outcome of its bi-monthly Monetary Policy Committee (MPC) meeting on Wednesday, August 6, at 10 AM.
The three-day meeting, taking place from August 4 to 6, 2025, is being chaired by RBI governor Sanjay Malhotra. The decision, which holds implications for interest rates and economic growth, will be delivered by the governor and streamed live on the RBI’s YouTube channel, X handle, and official website.
Following the announcement, a press conference is scheduled for 12 noon, offering deeper insight into the central bank’s assessment and future policy stance. Viewers can also follow ABP Live’s website for real-time updates and expert insights.
Bi-Monthly Policy Meets: A Brief Overview
The MPC meets every two months to assess prevailing macroeconomic conditions, determine key interest rates like the repo rate, and revise inflation and growth estimates. The upcoming meetings for FY26 are set for September 29–October 1, December 3–5, and February 4–6, 2026.
In its last meeting in June, the RBI delivered a 50 basis points (bps) cut to bring the repo rate to 5.5 per cent, its third consecutive reduction this year. The Cash Reserve Ratio (CRR) was also lowered by 100 bps to 3 per cent, to be rolled out in phases.
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What To Expect From August MPC?
Market observers expect the RBI to take a cautious approach this time. Gaurav Goel, entrepreneur and SEBI-registered investment advisor, anticipates another 25 bps rate cut, bringing the repo rate to 5.25 per cent, citing ample room for pro-growth measures amid easing inflation.
“This may be the final cut in the current calendar year, capping a total 100 bps reduction since April,” Goel noted, adding that Governor Malhotra is expected to focus on effective rate transmission across the banking system.
In contrast, Vinayak Magotra of Centricity WealthTech expects the central bank to pause further cuts in this round. “With a 50-bps reduction in the repo rate and 100-bps CRR cut already in play, the RBI may allow the full impact of recent moves to unfold,” he said.
Inflation, Growth and Global Headwinds
Retail inflation, measured by the Consumer Price Index (CPI), fell to 2.1 per cent in June, down from 2.82 per cent in May, staying well below the RBI’s 4 per cent medium-term target. With food prices softening and the monsoon season favourable, CPI inflation forecasts for FY26 may be revised downward again from the current 3.7 per cent estimate.
However, the RBI remains wary of external risks, including tariffs imposed by the US, and domestic uncertainties.
GDP growth for FY26 remains projected at 6.5 per cent, driven by strong public spending and robust consumption across urban and rural India.
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Repo Rate and Its Impact on Borrowers
The repo rate—the interest at which the RBI lends to commercial banks—directly influences loan EMIs and deposit interest. The June cut followed earlier reductions of 25 bps each in February and April, breaking an 11-meeting pause in rate changes. While lower rates can ease borrowing costs for consumers, they may also reduce returns on savings.
As inflation moderates and the effects of previous actions unfold, the central bank appears to be entering a phase of strategic patience. Analysts expect the RBI to continue evaluating both domestic indicators and global uncertainties before committing to further easing, especially with tariff tensions and monsoon variability in the backdrop.