RBI MPC highlights: Difficult to predict what impact tariffs will have, says RBI governor

RBI MPC Meeting August 2025 highlights: Stay tuned here for live updates

5:42 PM

'Prudent for MPC to wait for the rate transmission to take effect fully before further cuts'

Vinod Francis, General Manager, Chief Financial Officer, South Indian Bank, "The MPC’s decision to maintain status quo on rates and stance does not have any element of surprise since it is the right policy decision to ensure price stability in the wake of external headwinds including the proposed 25 per cent levy on exports by the US.  Also, it is pretty evident that RBI is leaving no stones unturned to ensure price stability though inflation is cooling and projected to be below apex bank’s upper threshold limit. It is also prudent for MPC to wait for the rate transmission to take effect fully before any further cuts.”

5:41 PM

'GDP forecast of 6.5% for FY26 signals continued confidence in India’s domestic economic resilience'

Umesh Revankar, Executive Vice Chairman, Shriram Finance, said, "The RBI’s decision to hold the repo rate steady at 5.5 per cent with a neutral policy stance reflects a balanced approach, prioritising both inflation control and growth. The maintained GDP forecast of 6.5 per cent for FY26 signals continued confidence in India’s domestic economic resilience, supported by strong rural demand and a gradual uptick in urban consumption. The downward revision of the inflation outlook to 3.1 per cent from 3.7 per cent is encouraging, suggesting easing price pressures and improved supply conditions."

 

He added, "RBI’s caution on external risks, particularly global uncertainties and geopolitical developments, could impact growth momentum. However, the policy outcome aligns well with the current economic context and provides stable business environment. We are optimistic about the credit demand outlook, especially in semi-urban and rural markets, and are well-positioned to support inclusive growth through sustained lending activity.”

5:39 PM

'Tariff risks could test financial resilience of salaried households'

Amit Bansal, Founder, BharatLoan, said, "The RBI’s decision to maintain repo rates with a neutral stance reflects confidence in domestic fundamentals, but the global environment is far from settled. The US's 25 per cent tariff on Indian exports poses a significant risk to export-driven sectors employing over millions of salaried professionals.  Even a 25 to 30 basis point dent in GDP growth, as some economists warn, could affect income stability and sentiment, especially among salaried urban households. The continued surplus in liquidity, supported by the staggered CRR cut, is expected to further ease credit conditions, which is positive for both lenders and borrowers. For lenders and borrowers, this policy continuity provides a window of predictability, while the RBI’s focus on liquidity, financial inclusion, and operational improvements signals a commitment to supporting both systemic resilience and grassroots access to finance."

4:21 PM

RBI opted for stability, anchored inflation expectations: Tata Capital's Rajiv Sabharwal

“The RBI’s decision to maintain the repo rate at 5.50%, after three successive rate cuts earlier this year, reflects a poised and forward-looking approach to managing evolving macroeconomic conditions. With the policy stance remaining neutral, and both the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates held steady at 5.25% and 5.75% respectively, the central bank has opted for stability while continuing to prioritise durable growth and anchoring inflation expectations, said Rajiv Sabharwal, MD and CEO, Tata Capital Ltd.

 

"A rate cut in upcoming meetings remains a possibility, which could further strengthen confidence in India’s resilient macroeconomic fundamentals. The move would also signal policy continuity amid external uncertainties, such as the impact of global tariff developments. The economic growth outlook remains robust, supported by steady performance in the services sector,” Sabahrwal stated.

4:00 PM

RBI's decision a positive signal for sectors like consumer durables: Home Credit India's Vivek Singh

"The RBI's decision to maintain a stable rate environment is a welcome move that will bolster consumer confidence and retail credit growth. As a leading consumer finance company, Home Credit India sees this as a particularly positive signal for sectors like consumer durables, where we've seen demand consistently grow among aspiring middle-income households," Vivek Singh, CEO, Home Credit India, said.  "This policy stability aligns perfectly with our mission to provide safe, affordable and inclusive financing solutions to those with little or no credit history," Singh added.

 

3:26 PM

Repo rate steady at 5.5% as RBI balances growth and risks: Forvis Mazars' Akhil Puri

“The RBI held the repo rate steady at 5.5 per cent with a neutral stance, signaling a cautious equilibrium amid rising global uncertainty. The US’s recent 25 per cent tariff on Indian exports added fresh external pressure, but the RBI maintained confidence in domestic resilience. CPI inflation for FY26 was revised down to 3.7 per cent (from 4 per cent) after June retail inflation hit a six-year low at 2.1 per cent, suggesting a shift in underlying price dynamics,"  Akhil Puri, partner, Financial Advisory, Forvis Mazars in India, said. "The RBI’s wait-and-watch approach, including monitoring the effects of earlier rate cuts and stable CRR, hints at no near-term action. Markets remain focused on US economic signals and FII flows for direction,” Puri said. 

2:50 PM

RBI’s stance on policy decisions boosts consumer confidence: Great Lakes' Chandrika Raghavendra

"The RBI’s decision to maintain a steady policy by holding the repo rate reflects a balanced approach, supporting growth while keeping inflation in check. For the middle class, stable EMIs provide financial predictability, enabling planning for big-ticket purchases without the fear of rising borrowing costs. Comfortable liquidity ensures easier access to credit for home, auto, and personal loans. While deposit rates may plateau, the policy stability, coupled with improving growth prospects, creates a conducive environment for equity and mutual fund investments. Overall, the RBI’s cautious stance boosts consumer confidence, supports long-term financial planning, and helps sustain middle-class consumption,"  Chandrika Raghavendra, assistant professor, economics and international business, Great Lakes Institute of Management, Chennai, said today.

 

2:05 PM

RBI’s policy decision boosts buyer confidence ahead of festive quarters: Manglam Group

“By maintaining the repo rate, the RBI has sent a reassuring signal to both buyers and developers. Festive quarters are a high-conversion period for residential sales, and stable interest rates help buyers make faster purchase decisions. After a phase of easing, this pause gives the market a chance to consolidate and absorb the gains. In Tier 2 and Tier 3 cities in particular — where rate sensitivity is higher — this decision will support sustained traction. We see it as a positive step in maintaining momentum without creating sudden shifts in buyer sentiment,” says Amrita Gupta, director, Manglam Group.

1:21 PM

Key highlights from Governor Sanjay Malhotra's speech

Governor Sanjay Malhotra said a favourable monsoon, along with the supportive policy of the government and the central bank, augurs well for the economy. While global uncertainties are mostly abated, tariff challenges remain, he added. Read here for a more detailed story.

12:49 PM

MPC LIVE news: Confident of meeting whatever happens in external sector, says RBI governor

We are quite confident that our reserves are adequate for over 11 months of imports, says RBI governor. FDI flow depends on various factors; confident of meeting whatever happens in external sector, he added.

12:38 PM

RBI MPC LIVE update: We don't see a major impact of US tariff on Indian economy, says RBI governor

We don't see a major impact of US tariff on economy unless you have retaliatory tariff, Governor Sanjay Malhotra stated. 

12:31 PM

NPA situation in banking system satisfactory; net NPA 0.5-0.6 per cent, says Governor Malhotra

Housing credit is overall doing well, it may have moderated, says RBI Governor Malhotra. Overall housing credit is 14 per cent, which is more than average credit growth rate of 10 per cent this year, Malhotra added.

12:27 PM

Sought to front-load rate cuts over short period: RBI governor

"The reason for maintaining policy rates is very clear which is to front-load rate cuts over short period of 4 months, therefore, transmission still happening," the RBI governor stated in the MPC press briefing.

12:23 PM

MPC LIVE: We are less dependent on outside as far as inflation is concerned, says RBI governor

"Nearly half of it (inflation basket) consists of food, non-tradeables," the RBI governor said. In India, we are less dependent on outside as far as inflation is concerned, he added.

12:17 PM

RBI MPC LIVE update: Difficult to predict what the tariff impact will be, RBI says

12:13 PM

MPC LIVE: We continue to monitor macroeconomic conditions on a policy-to-policy basis, says RBI governor

12:09 PM

We have factored in global uncertainities in our growth forecast: Governor Malhotra

"We had already reduced our 6.7 per cent growth forecast to 6.5 per cent. Global uncertainties have already been factored in, but it is still difficult to anticipate what the impact will be," RBI Governor Malhotra said.

11:38 AM

Stability in monetary policy augurs well for buyers, real estate developers: Colliers India

"Going ahead, inflation levels are likely to remain low, keeping the GDP growth rate projection for FY 2025-26 intact at 6.5 per cent. Stability in monetary policy augurs well for homebuyers and real estate developers, particularly in the affordable and mid-income segments. The lowering of interest rates in the recent past is expected to be fully passed on to the end users in upcoming quarters, who are likely to benefit from reduced financing costs. With the festive season approaching, developers can further capitalize on this momentum with timely project completions, new launches and festive offers & discounts. Overall, the cautious yet growth-supportive monetary policy is likely to strengthen demand across real estate segments in the second half of 2025,” says Vimal Nadar, national director and head of research, Colliers India, said today.

 

11:29 AM

MPC rightly hits pause button on rate cuts: PwC India's Ranen Banerjee

"The MPC has rightly pushed the pause button on the policy rates, given there is no immediate need to fire another rate cut bullet. While the headline CPI inflation has gone down to the lower range of the target band, core inflation continues to be around the mid-point of the range and mildly trending up. The growth forecast has been retained at 6.5%, which may come under some mild pressure but may not be very off, with a 10–20 bps downside risk. Any downsides on the external front are likely to be cushioned from the domestic demand uplift possibilities, with the benign inflation and trickle-down of the income tax rate cuts at the lower end of income brackets, where the marginal propensity to consume is likely to be higher," Ranen Banerjee, partner and economic advisory leader, PwC India, said. 

11:16 AM

RBI's decision reflects steady growth outlook; reinforces market confidence: CBRE's Anshuman Magazine

"The RBI's decision to hold the repo rate reflects a measured approach amidst evolving macroeconomic conditions. With a cumulative 100 basis points cut since February 2025, the focus is now on improved credit flow and broader economic momentum," Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said. "The announcement reflects ongoing demand recovery and a steady growth outlook, which reinforces market confidence for sectors including real estate, manufacturing, and infrastructure. For the real estate sector specifically, this signals stability and offers long-term predictability to developers and homebuyers. The upcoming festive season and range-bound inflation are expected to boost the market momentum further," Magazine added.

 

11:04 AM

MPC maintains repo rate at 5.5%, keeps stance 'neutral'. Full story

RBI Governor Sanjay Malhotra said in his monetary policy statement that the central bank will maintain a neutral policy stance as tariff-related uncertainties persist. Read the full story here.

10:51 AM

System liquidity has been in surplus, says RBI governor

Despite challenging external environment, Indian economy navigating steady growth path with price stability, says RBI governor.

10:45 AM

Standardising claim settlement for deceased customers’ bank accounts and lockers: RBI governor

Consumer-focused announcements by RBI Governor Sanjay Malhotra:

1) Re-KYC Camps for Jan Dhan Accounts :

 

- Banks will organise camps for re-KYC of Pradhan Mantri Jan-Dhan Yojana from July 1 to Sept 30, 2025.

 

- Camps will also help open new accounts and promote micro-insurance and pension schemes.

2) Simplified claim process for deceased customers:

 

- RBI is standardising how banks handle claims for bank accounts and locker contents of deceased customers.

 

3) New feature on RBI Retail Direct Platform:
 

-RBI will expand functionality of RBI Retail Direct platform to enable retail investors to invest in treasury bills through systematic investment plans.

 

10:29 AM

RBI projects inflation at 3.1% during FY26, lower from June estimates of 3.7%

Here is the quarterly inflation forecast:

 

- Q2 FY26: 2.1%, down from 3.4%

 

- Q3 FY26: 3.1%, down from 3.9%

 

- Q4 FY26: Maintained at 4.4%

 

- Q1 FY27: 4.9%

 

10:22 AM

Real GDP growth for FY2025-26 projected at 6.5%, says RBI governor

The quarterly estimates are:

 

Q1: 6.6%

Q2: 6.7%

Q3: 6.6%

Q4: 6.3%

10:18 AM

Geopolitical developments, global financial market poses risk to India’s growth outlook: RBI governor

Growth in industrial sector remained subdued; services sector expected to remain buoyant in the coming months, says RBI Governor Malhotra.

10:13 AM

RBI MPC LIVE update: Real GDP growth for current year projected at 6.5%

Real GDP growth for next financial year projected at 6.6 per cent, says RBI Governor Malhotra.

10:11 AM

RBI Monetary Policy LIVE: Core inflation steady around 4% mark, says RBI governor

10:08 AM

MPC LIVE: SDF kept unchanged at 5.25 per cent

The Standing Deposit Facility (SDF) rate remains at 5.25 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate are unchanged at 5.75 per cent each. 

10:06 AM

RBI Monetary Policy LIVE: MPC keeps repo rate unchanged at 5.5% with neutral stance

 In line with expectations, the Reserve Bank of India (RBI) kept the repo rate steady at 5.50 per cent on Wednesday, and continued with a 'neutral' stance.