RBI’s Rate Reveal: Sanjay Malhotra To Unveil August Policy On This Day– Will Markets Cheer Or Brace?

The Reserve Bank of India’s Governor, Sanjay Malhotra, is set to drop some market-moving news at 10 am this Wednesday with the Monetary Policy Committee’s August verdict. Investors and traders across India are all ears, eagerly waiting to see if the RBI will keep the rates steady or shake things up.

You can catch the live broadcast on the RBI’s website, YouTube, and X—no FOMO here! Stick around for the noon press conference, where Malhotra will spill more details and answer the burning questions. So, what’s your game plan? Will you cheer for a rate cut or brace for a hike? Get ready—this announcement could set the market’s next big move!

What’s Brewing For August MPC? Experts Weigh In

Wondering what the August Monetary Policy Committee (MPC) meeting will bring? According to experts, opinions are as mixed as your favorite chai blend. A recent Business Standard poll reveals that 60% of economists expect the MPC to keep rates steady — playing it safe and holding the line. But wait, there’s a twist: about 10 experts are betting on a 25-basis point rate cut, hoping for a little relief to stir the market.

So, what’s your take? Will the RBI stick to its guns, or will it surprise us with a rate cut to boost the economy? As traders and investors, it’s the kind of suspense that keeps you on your toes. Keep an eye out for Governor Sanjay Malhotra’s announcement — it could set the tone for markets in the months ahead.

June 2025 RBI MPC Highlights:

• Repo rate cut by 50 basis points to 5.5%
• Third consecutive rate cut in 2025
• Cash Reserve Ratio (CRR) reduced by 100 basis points to 3%
• MPC stance shifted from ‘accommodative’ to ‘neutral’

What Is Repo Rate And How Does It Affect You?

The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks. When the RBI lowers this rate, banks often reduce the interest rates on loans, making your EMIs for home, car, or personal loans cheaper. Conversely, when the repo rate goes up, borrowing becomes costlier as banks hike loan rates, increasing your EMI burden.

However, there’s a flip side: a lower repo rate might also mean reduced returns on your savings accounts and fixed deposits, as banks adjust interest payouts accordingly.

In 2025, the RBI has cut the repo rate three times—50 basis points in June and 25 basis points each in February and April—after holding it steady for 11 consecutive meetings before that. This dynamic affects both borrowers and savers, so keeping an eye on repo rate changes is essential for managing your finances.

RBI MPC August Meeting: Key Points

• The RBI started its important meeting on August 4 to decide on the next repo rate move.
• So far in 2025, the RBI has cut the repo rate by 1% (100 basis points), from 6.5% in February to 5.5% in June.
• The policy stance changed from ‘accommodative’ to ‘neutral’ in June, allowing for either rate cuts or hikes.
• India’s retail inflation dropped to 2.10% in June, the lowest since January 2019. Food inflation was negative at -1.06%.
• Experts expect the RBI might pause this time to see how earlier cuts affect the economy.
• CareEdge says the impact of previous rate cuts is still unfolding, so a wait is wise.
• US-India trade tensions and a strong US Fed make a cautious approach sensible.
• SBI Research suggests a 25 bps rate cut to boost growth and avoid long-term slowdown.
• Past rate cuts helped increase credit growth significantly, like in 2017 before Diwali.
• The RBI’s decision will affect loan rates and the economy; everyone is watching closely.

Also Read: RBI’s MPC Meeting Kicks Off: Will August 6 Decision Impact Rates? Economists Predict Major Moves