RBI Monetary Policy Update: Repo rate may reducing again in RBI meeting. There has been a 1% reduction so far this year and is expected to decrease again. This can make your EMI and loan and cheap. The decision will come on 6 August.
When did the repo rate start?
The repo rate began in 1992, when Dr. Manmohan Singh was the Finance Minister. From 2000, RBI started declaring in a monetary policy, since then there have been many changes.
RBI mpc meeting August 2025: The meeting of RBI Monetary Policy Committee (MPC) has started from Monday, August 4, 2025. The three -day meeting will end on August 6, after which Governor Sanjay Malhotra will announce policy decisions at the press conference. The meeting of this time is also special because the Reserve Bank has reduced interest rates three times so far this year, after which the current repo rate has come to 5.50%. Now the question is whether the central bank will cut it once again? If yes, then what will happen on the common people, your EMI and the economy of the country?
Will the repo rate be reduced again?
Market experts believe that the RBI can also cut the repo rate by 0.25% or 25 basis points in this meeting. The main reason for this is the possible impact of India’s GDP of tariff war and global uncertainty in the US. The repo rate may also be reduced to support the Reserve Bank growth, so that the demand can be pushed by a cheap loan.
Also read- This company of TATA Group has the highest loss, only 3 benefits in the top-10 last week
How much has been cut in the repo rate so far?
RBI has cut a total of 1% in three times so far this year. In February 2025, the repo rate was reduced from 6.50% to 6.25%. In April 2025, it was once again cut by 0.25%. In June 2025, it was again reduced by 0.50%, which has now reached 5.50%. Now if there is 0.25% reduction in August, the repo rate will come to 5.25%, which will be good news for home loan and auto loan.
What is a repo rate and why is it reduced?
The repo rate is the interest rate on which banks take loans from RBI. When RBI reduces it, banks get money at cheap rates, banks also offer cheap loans to customers, it reduces EMI and increases demand in sectors like real estate, auto. As soon as the repo rate decreases, your EMI may fall by about 0.50%, that is, a large number of customers will benefit.
Also read- IPO Mahasaptah: 9 new issue-15 companies listing, see full list
How does RBI control inflation from policy rate?
The RBI has a policy rate a tool that controls the economy. When inflation increases, the RBI makes money in the market by increasing the repo rate, it gives expensive loans, the demand decreases and inflation comes down. At the same time, when the economy is in lethargy, the RBI reduces the rate and increases the money in the market.
When is the next meeting of RBI MPC?
5-7 August 2025
29 September-October 2025
3-5 December 2025
4-6 February 2026