The Reserve Bank of India (RBI) is set to announce its third bi-monthly monetary policy of FY26 today, August 6, 2025. The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, met from August 4 to August 6, and the repo rate decision will be announced later today. Governor Sanjay Malhotra will deliver his monetary policy speech at 10:00 AM IST, wherein he will announce the repo rate decision taken by the MPC.

Where to Watch the Speech Live

The Reserve Bank of India will livestream the outcome of the MPC meet on its official YouTube channel and its social media handles. The livestream will start at 10:00 AM, August 6. The Press Information Bureau will also publish the RBI decisions on their websites and will share the livestream link. Additionally, various financial news outlets, including Financial Express and The Economic Times, will closely monitor the developments and simultaneously cover the details of the policy decision, its impact, and the economic outlook. Times of India will be covering the MPC meet through its live blog, providing real-time updates from RBI governor Sanjay Malhotra's address and analysis on what the policy means for the Indian economy and loan borrowers.

Key Expectations from the MPC Meet

The majority of analysts expect the Reserve Bank to maintain the status quo and not cut the repo rate in the August MPC meet. In the last MPC Meet, the Reserve Bank cut the repo rate by 50 basis points to 5.5 percent. This was the third rate cut announced by the central bank in 2025. Over the three bi-monthly MPC meetings held in 2025, the apex bank cut the repo rate by 100 basis points (1%), from 6.5% in February to 5.5% in June, with a mega 50 bps cut announced in the June meet. Further, the monetary policy stance was shifted to 'neutral' in June from 'accommodative' in April, hinting at an easing environment.

However, some economists believe that the Central Bank is likely to maintain the repo rate at 5.5 percent, following three consecutive rate cuts totaling 100 basis points. According to a report by the State Bank of India, the RBI may announce a 25 basis points repo rate cut in its monetary policy review to boost credit growth ahead of Diwali. The SBI report said that a front-loaded rate cut on Aug 6 can bring an 'early Diwali' by boosting credit growth.

Another key aspect to watch out for in the MPC Meet is the inflation forecast by the central bank. In the last MPC Meet in June, the Reserve Bank lowered the Consumer Price Index (CPI) based inflation forecast by 30 basis points to 3.7 percent. Similarly, Retail Inflation was also eased from 2.8 percent in May to 2.1 percent in June. India's retail inflation in June eased to 2.10%, the lowest year-on-year (YoY) rise seen since January 2019.

The RBI is expected to keep the repo rate unchanged at 5.50%, having already frontloaded easing through both a rate cut and a 100 bps CRR reduction earlier this year. The policy stance is also expected to remain 'Neutral' with a dovish bias.

Impact of Repo Rate on Common People

Repo rate or repurchase rate is the interest rate at which the Reserve Bank of India lends money to the commercial banks in India. If the repo rate is high, i.e banks are expected to increase interest rates on loans and EMIs. Any revision in the repo rate directly impacts the financial planning of the common people.