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RBI MPC Meeting 2025 Updates: RBI Holds Repo Rate At 5.5%; Doesn't See Major US Tariff Impact For India
The Reserve Bank of India (RBI) has decided to keep policy repo rate unchanged to 5.5%. The latest status quo comes after the six-member MPC reduced interest rates by a whopping 100 basis points from February to June 2025 policies. This also comes in-line with GoodReturns poll of 62 economists, where majority predicted a status quo.
As per a poll of 62 economists conducted by GoodReturns, the majority of them predicted a status quo in policy repo rate to 5.5% on August 6. 39 out of 62 economists in the GoodReturns poll estimated a pause in rates. 
The Monetary Policy Committee (MPC) held its 56th meeting from August 4 to 6, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Dr. Rajiv Ranjan attended the meeting.
After assessing the current and evolving macroeconomic situation, the MPC voted to maintain the policy repo rate at 5.50 per cent. Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) remains unchanged at 5.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 5.75 per cent.
This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
RBI Policy Live Updates: Inflation To Go Up; Will Tariffs Be The Reason?
RBI governer Sanjay Malhotra said that, while headline inflation is much lower than projected earlier, it is mainly due to volatile food prices, especially of vegetables. Core inflation, on the other hand, has remained steady around the 4 per cent mark, as anticipated. Inflation is projected to go up from the last quarter of this financial year. Growth is robust and as per earlier projections though below our aspirations. The uncertainties of tariffs are still evolving. Monetary policy transmission is continuing. The impact of the 100 bps rate cut since February 2025 on the economy is still unfolding.
RBI Policy Live Updates: Earlier Rate Cuts To Curb Economy From US Tariffs
Ajay Garg, CEO, SMC Global Securities: Amid a weakening rupee and growing uncertainty from new US tariffs, the RBI’s decision reflects a cautious approach. The central bank appears to be waiting for clearer signals on how these global developments could affect India’s export outlook. Tariff hikes in the US may lead to reduced demand for Indian goods, putting pressure on companies that rely heavily on exports and potentially impacting their earnings. While this could lead to some short-term uncertainty, the earlier rate cuts are expected to gradually deliver their full impact and support overall economic growth moving ahead.
RBI MPC Meeting Live Updates: RBI To Ensure Price Stability
Vinod Francis, General Manager, Chief Financial Officer, South Indian Bank: The MPC’s decision to maintain status quo on rates and stance does not have any element of surprise since it is the right policy decision to ensure price stability in the wake of external headwinds including the proposed 25% levy on exports by the US. Also, it is pretty evident that RBI is leaving no stones unturned to ensure price stability though inflation is cooling and projected to be below apex bank’s upper threshold limit. It is also prudent for MPC to wait for the rate transmission to take effect fully before any further cuts.
Sandeep Bagla, CEO, TRUST Mutual Fund
RBI/MPC has seen through the optically lower inflation readings and based its monetary rate setting decision on longer term inflation expectations. While headline CPI will be in 1-2% handle in the next few months, core inflation remains elevated and the next year's inflation is projected at 4.9%. It is important from a macroeconomic stability perspective that we have stable policy based on true economic realities. The GDP growth remains largely unchanged around 6.5% which was a minor positive surprise. Message is that the economy should not expect too much incremental support from monetory policy measures as of now.
Pramod Kathuria, Founder & CEO, Easiloan
The RBI's decision to hold the repo rate at 5.5% with a neutral stance is an indication of a stable and accommodative monetary ecosystem. This stability ensures that the recent 100 bps rate cut can permeate deeper in the credit markets to the advantage of both lenders and borrowers. For the housing loan market, a stable interest rate scenario ensures risk-free choice for homebuyers and consistent growth for the housing market. We view this as a positive development that will further drive momentum in real estate and home finance at Easiloan.
Anuj Puri, Chairman - ANAROCK Group
Indian real estate weathers unrelenting turbulence as the sentiment is pressured by Trump’s new 25% tariffs and a notable 20% plunge in housing sales across top metros, as per the latest ANAROCK data. In Q2 2025 alone, just 96,285 homes were sold, a steep fall from 120,335 a year ago, indicating increasing buyer hesitancy and market uncertainty. Amid these headwinds, the central bank’s policy choices come with high relevance to initiate a turnaround and arrest further market deterioration. The RBI has decided to keep the repo rates unchanged at 5.5%, also taking cognizance of the ongoing tariff uncertainties and the possible impact on the Indian economy. A rate cut leading to lower interest rate environment would have particularly boosted the affordable housing segment, which has been under considerable pressure in recent years.
RBI MPC Live Updates: CPI Inflation Target Lowered
Amidst six-year low CPI inflation, the Reserve Bank of India has lowered its target for consumer price index to 3.1% for FY26, compared to earlier target of 3.7%. Accordingly, CPI inflation target is 2.1% for July-September quarter, down from 3.4%, while October-December 2025 target is 3.1% from previous 3.9%. RBI retained the CPI target to 4.4% for Q4FY26, while Q1FY27 target is set at 3.9%.
RBI MPC Live Updates: Real Estate Market Hoped For Rate Cut Ahead Of Festive Season
Ramani Sastri, Chairman and MD, Sterling Developers: As the festive season approaches, we were looking for a rate cut which would have definitely boosted affordability further and investments in the real estate sector as stability in interest rates provides confidence to both homebuyers and developers. However, the decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms.
RBI Monetary Policy Live Updates: MPC Retained GDP Growth Forecast
RBI held its GDP growth target to 6.5% for financial year 2025-26. That being said, RBI retained its Q1FY26 GDP growth forecast to 6.5%, while Q2 target is at 6.7%, Q3 target at 6.6%, and 6.3% forecast for the last quarter of the fiscal. For Q1 of FY27, RBI predicts GDP growth rate at 6.6%.
RBI MPC Live Updates: RBI Governor On Previous 3 Rate Cuts
During the press briefing, RBI governor Sanjay Malhotra signalled that the impact of 100 basis points rate from February-June 2025, is still unfolding.
RBI MPC Live Updates: Market Extend Falls
Right after MPC policy outcomes were announced, Sensex and Nifty that traded marginally down in the opening bell, extended their fall. Sensex was struggling to hold 80,500 mark, as it traded at 80,593.21, down by 118 points. Meanwhile, Nifty traded lower by 50 points and floated around 24,600 levels.
RBI MPC Meeting Live Updates: Neutral Stance Maintained
Apart from keeping repo rate unchanged at 5.5%, RBI also decided to keep the monetary policy stance unchanged at NEUTRAL.
RBI MPC Meeting Live: RBI Holds Rates
The Reserve Bank of India (RBI) has decided to keep policy repo rate unchanged to 5.5%. The latest status quo comes after the six-member MPC reduced interest rates by a whopping 100 basis points from February to June 2025 policies. This also comes in-line with GoodReturns poll of 62 economists, where majority predicted a status quo.
RBI Monetary Policy Live Updates: Sensex, Nifty Trade Cautiously
Sensex and Nifty traded cautiously ahead of RBI's monetary policy. At the time of writing, Sensex traded at 80,666.66, down by 43.4 points. While Nifty performed at 24,622.95, down by nearly 28 points.
RBI MPC Meeting Live: Will RBI Trim Its GDP Target?
Anand Rathi Research Team: Reflecting this resilience, the IMF recently nudged its India growth forecast up by 20 basis points to 6.4%, just before US declared 25% tariff on Indian exports. The RBI is expected to trim the 6.5% projection, in view of at least limited tariff fallout on exports. With headline inflation subdued, a soft GDP deflator is likely to flatten nominal GDP growth further.
RBI Policy Live Updates: Market Looks For Dovish Views From MPC
Gaurav Garg, Lemonn Markets Desk: We expect the RBI to maintain a pause on rates this time, given the significant 50 bps cut in June and the need for transmission. With global uncertainties rising especially in light of the proposed U.S. tariffs, markets will be looking for a dovish tone and clear reassurance on growth support.Any indication of future rate flexibility, liquidity support, or downward inflation revision could buoy sentiment. Ultimately, the Governor’s commentary, especially on balancing domestic demand with external risks, will be the real signal for markets.
RBI MPC Meeting Live Updates: MPC To Wait-And-Watch
Suresh Darak, Founder, Bondbazaar: RBI has already frontloaded all the rate cuts to boost economic growth. Now we believe RBI will await the impact of its actions on GDP growth and inflation, before considering any movement in rates. It is expected that no change will be enacted in this week's policy meeting.
RBI MPC Live Updates: Where To Watch RBI Governor Sanjay Malhotra Speech
🗓 August 6, 2025
— ReserveBankOfIndia (@RBI) August 5, 2025
Tune in as RBI Governor @GovSMalhotra presents the Monetary Policy Statement at 10:00 AM
📺 Watch live: https://t.co/7UHo1C9BNX
🎙 Post-Policy Press Conference at 12:00 PM
📍 https://t.co/fW3u9DD3fA#RBIPolicy #MonetaryPolicy #RBI #MPC #RBIToday pic.twitter.com/5rJX3oSybU
RBI's press conference for bi-monthly monetary policy will begin at 10:00 am.
RBI MPC Meeting Updates: RBI Already Signals At Limited Room For Rate Cut
In its RBI monetary policy minutes of meeting for June 2025, RBI had hinted at limited space for rate cut. It said, after having reduced the policy repo rate by 100 bps in quick succession since February 2025, under the current circumstances, monetary policy is left with very limited space to support growth.
RBI Monetary Policy Live Updates: RBI Latest GDP Target
Ahead of August 2025 policy decisions, RBI has projected GDP growth of 6.5% for the entire financial year 2025-26. The economic growth estimates are at 6.5% in Q1, at 6.7% in Q2, at 6.6% in Q3, and 6.3% in Q4.
RBI MPC Meeting 2025 Updates: RBI Latest Inflation Target
As of now, RBI has predicted CPI inflation at 3.7% for FY26, with Q1 at 2.9%; Q2 at 3.4%; Q3 at 3.9%; and Q4 at 4.4%. The risk is evenly balanced.
RBI Policy Live Updates: RBI Policy Stance
In June 2025 policy, RBI decided to change the stance from accommodative to neutral.
RBI MPC Meeting Live Updates: Check Policy Interest Rates
After a 50 basis points cut in June 2025, the policy repo rate stands at 5.5%. Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) shall stand adjusted to 5.25% and the marginal standing facility (MSF) rate and the Bank Rate to 5.75%.
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