The Reserve Bank of India (RBI) started its three-day Monetary Policy Committee (MPC) meeting on Monday, led by Governor Sanjay Malhotra. The committee is expected to announce its decision on the bi-monthly policy review on Wednesday, 6 August.
Since February, the RBI has been easing interest rates to support economic growth. So far, the central bank has cut the repo rate by 100 basis points in three stages.
This week’s meeting comes at a time when there is uncertainty in the global economy, especially after the United States announced a 25% tariff on Indian imports, set to begin on 7 August. This move is likely to affect trade and create pressure on India’s growth outlook.
Due to these concerns, many analysts believe the RBI may pause rate cuts for now and wait to see how the situation develops before making further changes. However, some still hope for a small rate cut of 25 basis points to support businesses, especially ahead of the festive season.
India’s inflation has remained low in recent months, with the Consumer Price Index (CPI) at just 2.1% in June, well below the RBI’s target of 4%. The central bank is required by the government to keep inflation between 2% and 6%.
The final decision will be announced by RBI Governor Sanjay Malhotra and the six-member MPC panel, which includes three internal RBI officials and three external experts. Their decision will have a direct impact on lending rates, loans, and the broader economy.
Stay tuned for the official announcement on Wednesday, 6 August.
Since February, the RBI has been easing interest rates to support economic growth. So far, the central bank has cut the repo rate by 100 basis points in three stages.
This week’s meeting comes at a time when there is uncertainty in the global economy, especially after the United States announced a 25% tariff on Indian imports, set to begin on 7 August. This move is likely to affect trade and create pressure on India’s growth outlook.
Due to these concerns, many analysts believe the RBI may pause rate cuts for now and wait to see how the situation develops before making further changes. However, some still hope for a small rate cut of 25 basis points to support businesses, especially ahead of the festive season.
India’s inflation has remained low in recent months, with the Consumer Price Index (CPI) at just 2.1% in June, well below the RBI’s target of 4%. The central bank is required by the government to keep inflation between 2% and 6%.
The final decision will be announced by RBI Governor Sanjay Malhotra and the six-member MPC panel, which includes three internal RBI officials and three external experts. Their decision will have a direct impact on lending rates, loans, and the broader economy.
Stay tuned for the official announcement on Wednesday, 6 August.
