New Delhi, August 4 (H.S.) — The Reserve Bank of India (RBI) on Monday commenced its three-day bi-monthly Monetary Policy Committee (MPC) meeting in Mumbai. The meeting is expected to conclude on August 6, when RBI Governor Sanjay Malhotra will announce the committee’s decisions. Economists and analysts anticipate a 0.25% cut in the repo rate to support economic growth amid global uncertainty.
Possible Fourth Consecutive Rate Cut
Amid rising concerns over global trade tensions, particularly the US tariff war, and the resulting impact on India’s GDP growth, financial experts believe that the central bank might opt for a fourth consecutive repo rate reduction. A 0.25 percentage point cut is expected to stimulate economic activity by making borrowing cheaper.
The repo rate—the interest rate at which RBI lends short-term funds to commercial banks—currently stands at 5.50%. A rate cut would lower borrowing costs for banks, allowing them to offer loans to businesses and consumers at more affordable rates.
Previous Reductions This Year
The RBI has already made three repo rate cuts in 2025:
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February: From 6.50% to 6.25%
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April: Another 0.25% reduction
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June: A deeper 0.50% cut, bringing it to the current 5.50%
This series of reductions is aimed at cushioning the Indian economy against external shocks and providing momentum for domestic consumption and investment.
The final decision on the interest rate will be unveiled by the RBI Governor on August 6 following the conclusion of the MPC’s deliberations.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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