RBI MPC Meeting August 2025 Live Update: Sanjay Malhotra Keeps Repo Rate Unchanged in August Policy

Abhishek Bisen, Head-Fixed Income, Kotak Mahindra AMC said,“Despite the downward revision in average inflation projections to 3.10 per cent for FY26, the RBI chose to maintain a ‘wait and watch’ stance, keeping policy rates unchanged and the stance neutral, reflecting a unanimous decision. The commentary was neutral to hawkish, with GDP growth steady at 6.50 per cent and inflation projections of 4.40 per cent for Q4FY26 and 4.90 per cent for Q1FY27. Given this outlook, future rate cuts seem unlikely unless there is a significant slowdown in growth, possibly due to tariff-related uncertainties. Following this, G-sec yields have risen by 4 to 5 basis points, and the 10-year benchmark is expected to trade between 6.30 per cent and 6.45 per cent in the near term.”

Indian Bond yields opened flat on August 6 ahead of the announcement of Reserve Bank of India’s Monetary Policy Committee’s decision. However, after the Reserve Bank of India (RBI) governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) will keep the repo rate unchanged at 5.5 per cent in the August monetary policy review, the 10-year benchmark yield gained over 107 basis points and increased to 6.39 per cent.

According to the Governor’s statement, as the Jan Dhan scheme completes 10 years, banks will hold Panchayat-level camps from July 1 to September 30 for re-KYC, new accounts, micro insurance, pension schemes, and grievance redressal to promote financial inclusion.

After cutting the repo rate two times from 6.5 per cent to 5.5 per cent earlier this year, the RBI has now kept the rate unchanged. Anuj Puri, Chairman, ANAROCK group noted:“Given the upcoming festive season, developers may look to keep the market momentum going with offers and flexible payment plans, which may help improve affordability for many genuine buyers.” Read More

Stocks in the realty, auto, and banking sectors declined after the Reserve Bank of India kept the repo rate unchanged at 5.5 per cent. The Nifty Realty index dropped by 2.25 per cent, Nifty Auto fell by 0.90 per cent, while the Nifty Bank and Financial Services indices slipped by 0.21 per cent and 0.32 per cent, respectively. Read More

Binod Kumar MD & CEO of Indian Bank said that as RBI had front loaded rate cut, it was expected to maintain status quo. It is a welcome move. However, it leaves room to reconsider in coming months as CPI is benign and a push for growth may be required. At Indian Bank, we have already passed on benefits of previous rate cut and expect further normalisation in MCLR as cost of fund continue southward journey.

Rajeev Radhakrishnan, CFA, CIO – Fixed Income, SBI Mutual Fund said: After the frontloading of policy actions in June, it was unlikely that the RBI would alter the policy rate or guidance in the August review. In an uncertain external environment, marked by trade and tariff disruptions that are likely to keep external demand subdued, the onus of sustaining growth largely rests on domestic policy measures and the evolution of domestic demand drivers. In this context, we continue to expect the RBI to calibrate incremental actions based on the evolving domestic growth outlook.

LC Mittal, Director, Motia Builders Group, said: While home loan rates are anticipated to fall in the aftermath of Centre's announcement, borrowers has to bear in mind that monetary policy was “neutral” and there is no certitude to slashing rates further near order taxes. A rate cut now looks unlikely with inflation at multiyear lows and the risk of rising rates are contained for now, but longer term borrowers might still have to withstand future rate cycles. The best: choose a floating rate loan to avail the lower EMIs on offer in the current scenario, but pay back as aggressively as possible to keep your overall interest burden down.

According to RBI Governor Sanjay Malhotra’s statement, headline CPI inflation eased to a 77-month low of 2.1 per cent in June, mainly due to a sharp decline in food prices. Food inflation turned negative for the first time since 2019, while fuel inflation moderated to 2.6 per cent. Core inflation edged up to 4.4 per cent in June, driven in part by a continued rise in gold prices.

Siddarth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited said: “Stability of the repo rate, though, keeps both individuals comfortable and cautious. EMIs for home and auto loans are retained identical, making budgeting easier. But deposit rates are unlikely to rise swiftly, so those looking for better returns than the other options would still need to explore beyond traditional FDs in bonds or mutual funds. That is a time of recalibration less so than of risk, a time to be deleveraging, building liquid savings for emergencies and diversifying investments.”

Dharmendra Raichura, Vice President Finance at Ashar Group said that the RBI’s decision to hold the repo rate at 5.5 per cent signals a sensible, growth-focused stance in the face of easing inflation and an uncertain global outlook. Following the recent 25 per cent tariff imposed by US President Trump, which has added pressure to the economic cycle, maintaining rate stability provides much-needed reassurance especially for interest-sensitive sectors like real estate. For homebuyers, unchanged rates ensure continued affordability of home loans and support plans to upgrade to larger, future-ready homes.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra said, "By maintaining the repo rate at 5.5 per cent, the Reserve Bank of India is signalling a continued focus on balancing growth and inflation. With retail inflation cooling to a six-year low around 2.1 per cent in June and price pressures under control, the decision appears prudent and timely. Moreover, the recent imposition of a 25 per cent U.S. tariff on Indian exports adds uncertainty to global trade flows, making this cautious, steady policy stance even more relevant. For the real estate sector, a stable rate means continued affordability of home loans especially critical in a market already seeing robust interest among mid- and premium-segment buyers."

Garima Kapoor, Economist and Executive Vice President, Elara Capital, on RBI Monetary Policy said: While recognizing uncertainties surrounding the geopolitical environment and awaiting the result of transmission of previous rate cuts, RBI’s MPC decided to keep rates unchanged. On inflation front, despite 60bps undershooting of the inflation projection for FY26, RBI assessed this as largely led by volatile food items. Though we expected MPC to cut rates amid soaring tariff related uncertainties and easing inflation dynamics, today’s decision to maintain the pause may also be suggestive of MPC keeping its powder dry, should things worsen on the trade and tariff front.

Reserve Bank of India (RBI) Governor Sanjay Malhotra said, “The domestic growth is holding up and is broadly revolving around the lines of our assessment. Even though there were some high-frequency indicators that showed missed signals in May this year. Rural consumption remains resilient while urban consumption revives. Fixed investment supported by buoyant government capex continues to support economic activity.”

(Source: PTI)

The Reserve Bank of India’s Monetary Policy Committee (MPC), on August 6, revised the Consumer Price Index (CPI) inflation projection for FY26 to 3.1 per cent, down from its earlier forecast of 3.7 per cent.

RBI Governor Sanjay Malhotra announced that real GDP growth for FY26 is projected at 6.5 per cent, with quarterly estimates at 6.5 per cent (Q1), 6.7 per cent (Q2), 6.6 per cent (Q3), and 6.3 per cent (Q4). For Q1 FY27, growth is forecast at 6.6 per cent.

RBI Governor Sanjay Malhotra says core inflation remains steady around the 4 per cent mark during his address at the August 2025 MPC meeting.

The central bank has retained its monetary policy stance as ‘Neutral’ in the August 2025 review.

RBI Governor Sanjay Malhotra has confirmed that the repo rate remains unchanged in the August 2025 monetary policy decision.

RBI Governor Sanjay Malhotra has started delivering the MPC outcome.

RBI Governor Sanjay Malhotra is set to announce the Monetary Policy Committee’s decision shortly, with the update expected from 10 AM onwards.

“The August 2025 RBI MPC review could be a turning point for household wallets. A repo rate cut would bring relief to borrowers with floating-rate loans. Even a pause will help keep EMIs affordable and support credit demand, especially during the festive season,” said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt Ltd.

LC Mittal, Director, Motia Builders Group said: “Optimism has been surrounding the real estate sector ahead of the RBI MPC meeting following firm housing demand and improved affordability backed by 100 bps rate cuts this year. Builders aspire that one last small rate reduction or a pause could help in preserving the allure of home loans, especially for first-time borrowers.”

He added that industry experts have emphasized the importance of stability and predictability from the MPC level that they say will help reinforce confidence in both residential and commercial real estate investments.

Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, said: “The RBI is unlikely to go for another rate cut at this stage. The external environment remains too volatile and uncertain, and there needs to be more time for monetary transmission to take effect. Tariff concerns were already factored into the earlier rate cut and should not substantially weigh in on the RBI MPC's decision.”

Keshav Mangla, GM – Business Development, Forteasia Realty, said: “The August 2025 policy review for the Indian real estate industry, on one hand, is against subdued inflation but varied urban-rural demand and global trade unease. Both builders and proponents of affordable housing expect interest rates to either hold steady or be cut, if only just a little, to boost the economy.” He added, It has already benefitted due to the earlier rate reductions.

According to SBI Research, the RBI may frontload a 25 basis point rate cut in the August 4–6 policy meeting. The note points to early signs of activity in areas like GDP growth, inflation, tariffs, and festive demand as key factors influencing this view.

“While the RBI Monetary Policy Committee sits down for its August 2025 meeting, the Indian Real Estate Sector is at a crossroads. A relatively low inflation environment just over 2 per cent means the borrowing outlook is benign, but home loans are still tough to get with unchanged lending standards in August. If there is a 25-basis-point cut trend may fresh momentum kick in especially in the affordable and mid-income segment that will only reinforce positive sentiment among homebuyers,” said Aman Gupta, Director, RPS Group.

So far in 2025, the RBI has cut the repo rate by a cumulative 100 basis points and brought it down to 5.5 per cent from 6.5 per cent in February. Acccording to Vishal Kumar Manoria, Senior Manager, Investment Research & Analytics, Aranca, “Despite headline inflation easing to a multi-year low in June, the RBI is expected to keep the repo rate unchanged in the upcoming policy meeting.” Read More

In the previous Monetary Policy Committee (MPC) meeting held from June 4 to 6, 2025, the Reserve Bank of India reduced the policy repo rate by 50 basis points, from 6.00 per cent to 5.50 per cent, and changed the policy stance to neutral from accommodative.

The Reserve Bank of India (RBI) will announce its second monetary policy of FY26 today, August 6. The three-day meeting of the Monetary Policy Committee (MPC), held from August 4 to 6 and led by Governor Sanjay Malhotra, concludes today. The RBI is scheduled to announce its interest rate decision at 10:00 AM.