RBI likely to reduce repo rate to 5.25% in August
The Reserve Bank of India (RBI) might lower the repo rate to 5.25% this August, making it the fourth rate cut since February.
This move comes as inflation cools off and could help make loans a bit cheaper for everyone.
RBI is adding more cash into the system to boost growth
After surprising everyone with a bigger-than-expected rate cut in June, RBI is staying flexible because inflation forecasts keep dropping—now expected at 3.4% for FY26, even below their own estimate.
They're also adding more cash into the system to boost growth, while maintaining their GDP growth forecast at 6.5%.
If another rate cut happens, borrowing money could get affordable
If another rate cut happens, borrowing money—like home or student loans—could get more affordable.
With RBI now taking a "wait and watch" approach, future changes will depend on how prices behave.
If you care about interest rates or plan to borrow or invest soon, it's worth keeping an eye on these updates.