RBI's MPC meeting begins: Will repo rate see a cut?
The Reserve Bank of India's Monetary Policy Committee kicked off its three-day meeting in Mumbai today. The big question: will they lower the repo rate?
With inflation cooling off, a State Bank of India report suggests a 0.25% cut.
RBI Governor Sanjay Malhotra will reveal the decision this Wednesday at 10am.
Cheaper loans on the cards
If the repo rate drops, loans—from student debt to home loans—could get cheaper, making borrowing easier for everyone.
Inflation is expected to stay around 4% or even dip below 2% for September and October, which gives RBI some breathing room to boost growth without letting prices spiral.
Markets and policymakers are watching closely since any move here affects how much money flows through India's economy.
What happened in the last meeting
Earlier this year (2024), RBI kept the repo rate unchanged at 5.5% in August.
Now, with the potential for another small tweak—if all goes as expected.