RBI MPC meet: more good news by central Bank? Will it cut repo rate? check what SBI survey says

The final decision on repo rate by RBI will be announced on October 1 (Wednesday).

The Reserve Bank of India’s Monetary Policy Committee (MPC) has begun its three-day deliberations in Mumbai today to decide whether to reduce interest rates or maintain the status quo. As inflation is easing but growth indicators are sending mixed signals, the central bank’s next move is being closely tracked.

The repo rate is currently at 5.5%. The MPC’s decision, to be announced by RBI Governor Sanjay Malhotra on Wednesday, October 1, at 10 AM, may bring a major change in borrowing costs, investment sentiment, and overall economic momentum.

What Happened In Last RBI MPC Meets?

In its previous meeting in August, the MPC unanimously voted to hold the repo rate steady at 5.5%, after cutting rates by a total of 100 basis points since February.

The RBI reduced the key short-term lending rate (repo) by 100 basis points in three tranches beginning in February, amidst declining consumer price index (CPI) based inflation.

However, the central bank opted for a status quo in the August bi-monthly monetary policy, taking a wait-and-watch approach to assess the impact of US tariffs and other geopolitical developments on the domestic economy.

Will RBI Cut Repo Rate?

A SBI research report has pitched for a 25 bps rate cut, saying it is the ‘best possible option’ for the RBI, though some other experts opined that the central bank’s rate-setting panel may again opt for status quo in its bi-monthly policy to be announced on October 1.

Reserve Bank of India (RBI) Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is scheduled to begin a three-day brainstorming on policy rate on Monday in the backdrop of the ongoing geopolitical tensions and the US imposing 50 per cent tariffs on Indian shipments.