RBI MPC Meeting August 2025 Live: Will Sanjay Malhotra Opt for Another Repo Rate Cut or Maintain the Status Quo?
RBI Monetary Policy Committee (MPC) Meeting, Repo Rate Cut – Live Updates:
RBI Governor Sanjay Malhotra is set to announce the outcome of the Monetary Policy Committee’s (MPC) decision on interest rates today at 10 AM. While the majority of economists anticipate that the central bank will keep the repo rate steady, some analysts believe the RBI may introduce one final 25 basis points cut before entering a prolonged pause phase.
The three-day MPC meeting, chaired by Governor Sanjay Malhotra, began on Monday, August 4, and concludes today, August 6.
The six-member panel comprises Governor Sanjay Malhotra, Deputy Governor Poonam Gupta, Executive Director Rajiv Ranjan, and three external members — Nagesh Kumar, Saugata Bhattacharya, and Ram Singh.
In the previous monetary policy review in June 2025, the MPC surprised markets with a 50 basis points reduction in the repo rate, taking it down to 5.5%. Alongside, a 100 basis points reduction in the Cash Reserve Ratio (CRR) was also announced, reflecting the RBI’s optimism over easing inflation trends supported by both domestic and international factors. With this, the RBI has now trimmed the repo rate by a total of 100 basis points across three straight policy meetings.
India’s retail inflation, measured by the Consumer Price Index (CPI), dropped to 2.1% in June 2025 — the lowest since January 2019. In comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024.
As per its mandate, the RBI aims to maintain inflation at 4%, within a tolerance range of ±2%.
In its June policy update, the RBI revised the retail inflation forecast for FY26 to 3.7%, lower than its earlier estimate of 4%. This is the most optimistic inflation projection from the central bank in recent years, further fuelling expectations of a continued accommodative stance — or a cautious pause — going forward.
