RBI MPC Meeting September 2025: The Reserve Bank can bring good news for common people and businessmen before Dussehra-Diwali. Interest rates can be cut in the MPC meeting to be held in September. If this happens, there will be relief in loan and EMI.
RBI Interest Rate Cut News: After GST 2.0, now the common man can get very good news from RBI. According to SBI’s latest report, the Reserve Bank (RBI) Monetary Policy Committee (MPC) may cut interest rates by 25 basis points in its September meeting. If this happens, there can be great relief in the loan EMI before Dussehra-Diwali. Its effect will be seen on the savings of the people. Let’s know how much you will benefit from this?
What is a relief report in EMI?
The SBI report states that inflation rates can go below 2% in September and October. This means that taking a loan will be even easier and the burden on your pocket will be reduced in the festive season. In such a situation, home loan, car loan or personal loans can be cheap.
What is the connection of GST cut and inflation?
This report also states that if the GST rates change in October, inflation may fall by 1.1%. This will be the lowest inflation rate after 2004. Last time in 2019, inflation was reduced by about 35 basis points due to reduction in GST rates. That is, the decision of RBI may directly affect your shopping and festivals.
How much did RBI reduce the repo rate this year?
In February this year, RBI MPC reduced the repo rate from 6.5% to 6.25%. This was followed by a cut of 0.25% in April and 0.50% in June. That is, overall, there was a decrease of 1% after cutting interest rates thrice this year. From June, the measure of interest rate cuts was high. After this, the previous meeting of MPC was held from 4 to 6 August, in which the repo rate was kept at 5.5%.
What is the connection of repo rate and EMI?
When the repo rate increases, loans from the Central Bank for the bank become expensive, which directly affects the customers, ie the loan becomes expensive and EMI more. When the repo rate decreases, the bank’s debt becomes cheaper and the loan for customers is cheaper and EMI reduces. Meaning if the RBI reduces interest rates, then the burden on the pockets of the loans will be reduced in the festive season and the shopping will be easier.
When is RBI MPC meeting?
The next MPC meeting of RBI will be held from 29 to 30 September 2025. Reserve Bank Governor Sanjay Malhotra will give information about the decisions taken in it on 1 October 2025. In such a situation, if you are thinking of taking a home loan, personal loan or car loan, then keep an eye on the rates from now on.
Frequently asked questions (FAQs)
Why can EMI cut in the September MPC meeting of RBI?
RBI controls interest rates under its monetary policy. In September, a cut of 25 basis points at the MPC meeting will make the loan cheaper and provide relief in EMI, which will benefit the common man and businessmen.
What will be the effect of EMI cuts on festivals?
If EMI decreases, shopping and investment will be easier during Diwali-Dussehra. This will save relief and money in your festival budget.
Will EMI cuts apply to all loans?
The repo rate cut usually affects credit facilities such as home loans, personal loans and car loans. According to its policy of the bank, a change in interest rate will be implemented.
What is the connection of inflation and cut in EMI?
RBI gets a chance to reduce the interest rate due to reduced inflation. This directly affects the EMI of the loan and the common man benefits.
When will the next MPC meet and when will the decision come?
The next MPC meeting of RBI will be held on 29-30 September 2025 and its decision will be revealed on 1 October 2025.
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