RBI MPC Meeting 2025 LIVE Updates: The Reserve Bank of India (RBI) is set to announce the outcome of its bi-monthly Monetary Policy Committee (MPC) meeting
today, Wednesday, August 6. RBI Governor Sanjay Malhotra will deliver the policy statement at 10 AM, wrapping up a three-day meeting that began on August 4.
Repo rate expected to be kept unchanged
Markets and economists are widely expecting the central bank to pause its rate-cutting cycle after delivering 100 basis points (bps) of cuts so far in 2025. The repo rate currently stands at 5.5%, down from 6.5% in February. The last cut of 50 bps came in June, when the policy stance was also shifted from ‘accommodative’ to ‘neutral’.
Despite easing inflation and weak demand indicators, a Reuters poll showed that 77% of economists (44 of 57 surveyed) expect the RBI to keep the repo rate unchanged this time.
Why a rate pause is expected
India’s retail inflation dropped sharply to 2.10% in June, the lowest since January 2019. Food inflation also turned negative at -1.06% in June, compared to 0.99% in May. Headline CPI for the first quarter of FY26 came in at 2.9%, down from 3.6% in April.
Yet, despite this favorable inflation data, the RBI may adopt a "wait and watch" approach to assess the full impact of earlier cuts. Experts say concerns over global volatility, oil prices, and US tariff moves may keep the central bank cautious.
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Madan Sabnavis, Chief Economist at Bank of Baroda, said the MPC may not be influenced by just June inflation or recent US tariff news. “We do not expect any change of stance or policy rate this time. The tone will be more cautious with some comfort being drawn on the resilient growth front,” he said.
Current MPC composition
The six-member MPC includes three RBI officials – Governor Sanjay Malhotra, Deputy Governor Poonam Gupta, and Executive Director Rajiv Ranjan – along with three external members: Nagesh Kumar, Saugata Bhattacharya, and Ram Singh.
Key indicators supporting pause or cut
Retail Inflation (CPI): 2.10% in June, down from 2.82% in May
Food Inflation (CFPI): -1.06% in June
MPC Stance: Shifted to ‘neutral’ in June
Demand: Weak consumer sentiment
Growth: Signs of slowdown in GDP
Policy Rate Cuts: 100 bps cut in 2025 (Feb–June)
RBI’s mandate
The government mandates the RBI to maintain retail inflation at 4% with a tolerance band of 2% on either side. Given current inflation is well below the lower band, the RBI has room to cut further but may prefer to pause and monitor global developments.
CareEdge Ratings also expects no rate action today, stating, "RBI is expected to hold off on further easing, allowing time for the full impact of earlier measures to materialise."
The RBI’s decision will be closely watched by investors, businesses, and policymakers for cues on the central bank’s outlook on inflation, growth, and future monetary policy direction.
