Monetary Policy Committee assembly LIVE: RBI retains repo fee unchanged at 5.5%

Highlights of RBI’s August 2025 financial coverage

• August 06, 2025 13:55

  Continue to do no matter required to help development: RBI Governor

  Amid uncertainties over international commerce entrance, Reserve Bank Governor Sanjay Malhotra stated the central financial institution is taking all needed steps to help financial development.

  “We will proceed to do no matter is required to be completed in such a state of affairs. Of course, commerce negotiations are nonetheless persevering with. We are hopeful that we are going to have an amicable resolution,” he stated throughout a post-monetary coverage media interplay right here.

  The RBI has taken numerous measures to help development not solely on financial coverage or liquidity facet however on prudential regulation facet as properly steps have been taken, he stated.

  – PTI

• August 06, 2025 13:38

  Interest rate-sensitive auto, realty, financial institution shares decline as RBI holds charges regular

  Interest rate-sensitive auto, realty and financial institution shares on Wednesday declined 5% after the Reserve Bank of India (RBI) saved its coverage rate of interest unchanged, as policymakers weighed the dangers posed by US President Donald Trump’s commerce insurance policies.

  The scrip of Bosch declined 4.85% to commerce at Rs 38,617.75, Hyundai Motor India fell 1.95% to Rs 2,146.15, HeroMoto Corp depreciated 1.31% to Rs 4,482.60, Apollo Tyres diminished 1.07% to Rs 435.10, and Mahindra & Mahindra dipped 0.83% to Rs 3,183.50 on the BSE. 

  From the realty pack, Prestige Estates Projects decreased 2.68 per cent to commerce at Rs 1,566.20, DLF fell 2.65% to Rs 760.05, Godrej Properties dipped 2.42% to Rs 2,063.55, the Phoenix Mills slipped 2.40% to Rs 1,439.65, and Brigade Enterprises fell 2.27% to Rs 969.70. 

  The banking shares have been additionally buying and selling within the pink territory, with IndusInd Bank declining by 2.58% to commerce at Rs 798.10 per share, IDFC First Bank dropped 1.34% to Rs 68.41, Bank of Baroda fell 0.46% to Rs 239.55, Axis Bank dipped 0.16% to Rs 1,068.85 and State Bank of India by went decrease by 0.02% to Rs 800.50.

  – PTI

• August 06, 2025 13:22

  EEPC Chairman reacts to RBI financial coverage

  Pankaj Chadha, Chairman, EEPC, says, “Despite inflation remaining low, the RBI has maintained the established order on the coverage repo fee, conserving the important thing rate of interest unchanged at 5.5%. This signifies that the central financial institution has adopted a cautious method whereas sustaining coverage stability. We welcome the RBI’s choice however hope that the coverage repo fee shall be lowered within the coming months.”

  “A decrease borrowing price would considerably assist the trade, particularly MSMEs, which have been discovering it tough to deal with back-to-back challenges.

  At a time when there’s rising uncertainty on the worldwide entrance, the engineering items exports sector wants steady help, each fiscal and financial,” he provides. 

  “While the engineering exports sector has managed to document constructive development to date within the present fiscal, uncertainty surrounding the commerce cope with the US poses draw back dangers,” says Mr. Chadha. 

• August 06, 2025 13:11

  Don’t see a serious impression of U.S. tariff: RBI Governor

  Speaking in regards to the tariff risk from the U.S. posed by President Donald Trump, RBI Governor, says, “We don’t see a serious impression of U.S. tariff (on the financial system) except you might have a retaliatory tariff.” 

  Talking about NPA, he provides that the scenario within the banking system stays passable, and the online stands at NPA 0.5-0.6%. 

  “Will proceed to observe macroeconomic circumstances on a policy-to-policy foundation,” he provides.

  -PTI

• August 06, 2025 12:53

  RBI Governor on U.S. President’s comment India’s financial system

  “I’m not the correct individual to react to the President… We have a really sturdy development fee of 6.5% and actually as per IMF it’s a 6.4% and three% development fee for the world should you take a look at it. We are contributing about 18% which is greater than the U.S. whose contribution is anticipated to be a lot much less, I believe 11% or one thing. So we’re doing very properly and we are going to proceed for additional enchancment,” RBI governor Sanjay Malhotra stated whereas responding to a query from The Hindu on Donald Trump’s ‘useless financial system’ comment.

  The Hindu Bureau

• August 06, 2025 12:51

  NPA scenario in banking system passable: RBI Governor.

  RBI Governor Sanjay Malhotra stated the NPA scenario within the banking system is passable. 

  “The internet NPA is 0.5-0.6%,” he added. 

  PTI

• August 06, 2025 12:50

  We proceed to observe macroeconomic circumstances on a policy-to-policy foundation: RBI Governor

  RBI Governor stated we proceed to observe macroeconomic circumstances on a policy-to-policy foundation. “We don’t see a serious impression of U.S. tariff (on financial system) except you might have retaliatory tariff,” he added. 

  The impression of fee reduce on actual financial system comes with a lag, Mr. Malhotra stated. 

  PTI

• August 06, 2025 12:47

  RBI Governor presents Monetary Policy assertion

• August 06, 2025 12:38

  Shishir Baijal, Anshuman Magazine react to the MPC bulletins

  Shishir Baijal, chairman and managing director, Knight Frank India stated, “The RBI’s choice to carry charges regular underscores its calibrated method amidst a fancy financial backdrop. While inflation has moderated, it stays uneven, and the central financial institution is understandably cautious given the persistent dangers from international commodity costs, geopolitical tensions, and risky capital flows.

  For the true property sector, the continuation of secure coverage charges and surplus liquidity circumstances present much-needed predictability and helps protect affordability for homebuyers. Notably, some banks have already lowered client residence mortgage charges – a transfer that helps housing demand, particularly within the mid-income and low-income phase – and extra transmission in rates of interest is underway. This coverage continuity, coupled with easing credit score circumstances and regular financial development can present a lift to the reasonably priced housing classes.”

  Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, stated, “The RBI’s choice to carry the repo fee displays a measured method amidst evolving macroeconomic circumstances. With a cumulative 100 foundation factors reduce since February 2025, the main target is now on improved credit score circulation and broader financial momentum. The announcement displays ongoing demand restoration and a gradual development outlook, which reinforces market confidence for sectors together with actual property, manufacturing, and infrastructure. For the true property sector particularly, this alerts stability and affords long-term predictability to builders and homebuyers. The upcoming festive season and range-bound inflation are anticipated to spice up the market momentum additional.”

• August 06, 2025 12:33

  Reactions to the MPC announcement:

  Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank stated: “The MPC’s choice to maintain charges unchanged comes within the wake of worldwide uncertainties, at the same time as inflation stays benign and draw back dangers to development persists. With inflation prone to pattern increased put up the close to time period beneficial traits, the bar for fee cuts forward is about very excessive. We can see some room for the final leg of easing provided that development momentum slows considerably.” 

  Ranen Banerjee, associate and financial advisory chief, PwC India stated, “The MPC has rightly pushed the pause button on the coverage charges, given there isn’t a quick want to fireplace one other fee reduce bullet. While the headline CPI inflation has gone all the way down to the decrease vary of the goal band, core inflation continues to be across the mid-point of the vary and mildly trending up. The development forecast has been retained at 6.5%, which can come below some delicate stress however is probably not very off, with a ten–20 bps draw back threat. Any downsides on the exterior entrance are prone to be cushioned from the home demand uplift prospects, with the benign inflation and trickle-down of the earnings tax fee cuts on the decrease finish of earnings brackets, the place the marginal propensity to eat is prone to be increased.”

  Ajay Kumar Srivastava, managing director & CEO, Indian Overseas Bank stated, “We additionally welcome RBI’s transfer on liquidity administration and its goal to stay nimble which is essential for making certain credit score availability whereas sustaining financial stability. RBI’s choice to boost retail entry to Treasury Bills through SIPs and the standardisation of financial institution locker and account declare settlements, are initiatives which might be anticipated to additional deepen monetary inclusion and increase investor confidence. At Indian Overseas Bank, we see this coverage stance as development and stability oriented, and we’re dedicated to supporting the credit score wants of people and companies alike.” 

• August 06, 2025 12:08

  MPC observes inflation outlook for 2025-26 has change into extra benign than anticipated in June

  The MPC noticed that inflation outlook for 2025-26 has change into extra benign than anticipated in June. 

  Large beneficial base results mixed with regular progress of the southwest monsoon, wholesome kharif sowing, enough reservoir ranges and cozy buffer shares of foodgrains have contributed to this moderation. 

  CPI inflation, nevertheless, is prone to edge up above 4% by This autumn:2025-26 and past, as unfavourable base results, and demand facet elements from coverage actions come into play. Barring any main unfavourable shock to enter costs, core inflation is prone to stay reasonably above 4 per cent through the 12 months, the MPC noticed. 

  The Hindu Bureau

• August 06, 2025 11:27

  Despite commerce uncertainty resulting from tariffs, RBI retains GDP projection for FY26 unchanged at 6.5%: RBI Governor

  Despite the unsure international commerce setting resulting from ongoing tariff bulletins and commerce negotiations, the Reserve Bank of India (RBI) has saved the GDP development projection for the present monetary 12 months 2025-26 unchanged at 6.5%. 

  Announcing the financial coverage on Wednesday, RBI Governor Sanjay Malhotra stated that the central financial institution continues to see resilience in home exercise, supported by beneficial macroeconomic circumstances. 

  “Prospects of exterior demand, nevertheless, stay unsure amidst ongoing tariff bulletins and commerce negotiations. Taking all these elements into consideration, actual GDP development for 2025-26, the present 12 months, is projected at 6.5%, our earlier projection,” the Governor stated.

  ANI

• August 06, 2025 11:26

  RBI revises retail inflation downward to three.1% for FY26 from 3.7% projections of June

  The Reserve Bank of India (RBI) has revised its Consumer Price Index (CPI) inflation projection for the monetary 12 months 2025-26 downward to three.1% for the monetary 12 months 2026 (FY26), a major discount from the three.7% forecast made in June. 

  RBI Governor Sanjay Malhotra stated, “CPI inflation for the present 12 months 2025-26 is now projected at 3.1%. This is down from 3.7% that we had earlier projected in June. 

  According to the RBI Governor, headline CPI inflation declined for the eighth consecutive month, reaching a 77-month low of two.1% in June. This sharp moderation was largely pushed by a decline in meals inflation, which recorded a unfavourable print of -0.2% in June — its first such studying since February 2019. 

  Notably, deflation in greens, pulses, and oilseeds performed a central function on this downward pattern, supported by improved agricultural exercise and efficient supply-side interventions. 

  ANI

• August 06, 2025 10:53

  MPC’s choice to maintain fee unchanged receives constructive suggestions

  Reacting to MPC’s choice Umesh Kumar Mehta, CIO, SAMCO Mutual Fund stated “conserving the Repo fee unchanged is probably the most prudent coverage motion taken by the MPC. Given that the Indian Rupee is weakening and narrowing of the worldwide rate of interest differentials, the scope for fee discount was slim. In the curiosity of stability of the forex given the risky commerce circumstances, established order on rate of interest is one of the best that the financial authority can do.”

  Yashish Dahiya, chairman and co-founder of PB Fintech stated: “The RBI’s Monetary Policy Committee has taken a even handed choice to carry the repo fee at 5.5% at this important juncture. As regulators worldwide grapple with the dimensions of rising geopolitical headwinds and heightened commerce dangers, the RBI’s prudent “wait‑and‑watch” stance stands out as each well timed and strategic, notably after the numerous fee reduce carried out within the prior coverage assembly. This measured pause permits time for the complete transmission of earlier easing, whereas fortifying the financial system in opposition to exterior shocks that would unsettle development and inflation trajectories.”

• August 06, 2025 10:41

  Domestic development resilient: RBI

  Domestic development stays resilient and is broadly evolving alongside the strains of RBI’s evaluation, the Governor stated whereas saying MPC’s choice. 

  “Private consumption, aided by rural demand, and glued funding, supported by buoyant authorities capex, proceed to spice up financial exercise. On the provision facet, a gradual south-west monsoon is supporting kharif sowing, replenishing reservoir ranges and boosting agriculture exercise. Moreover, companies sector and development exercise stay sturdy. However, development in industrial sector remained subdued and uneven throughout segments, pulled down by electrical energy and mining,” he added. 

• August 06, 2025 10:29

  Global setting continues to be difficult: RBI

  The international setting continues to be difficult, stated RBI Governor whereas saying the choice of the MPC. “Although monetary market volatility and geopolitical uncertainties have abated considerably from their peaks in current months, commerce negotiation challenges proceed to linger. Global development, although revised upwards by the IMF, stays muted. The tempo of disinflation is slowing down,with some superior economies even witnessing an uptick in inflation,” he added. 

• August 06, 2025 10:12

  CPI projected at 3.1%

  CPI inflation for FY26 projected down at 3.1percentas in contrast with 3.7% projected in June.

• August 06, 2025 10:09

  GDP development projection for FY26 retained at 6.5%

  The RBI on Wednesday stated the true GDP development has been projected at 6.5%. 

• August 06, 2025 10:08

  Rural consumption stays resilient: RBI Governor

  Steady south-west monsoon is boosting agricultural actions, and rural consumption stays resilient, the RBI Governor says. 

  Growth within the industrial sector stays subdued, he says. 

• August 06, 2025 10:04

  RBI retains repo fee unchanged at 5.5%

  In a bid to spur development, the Reserve Bank of India’s Monetary Policy Committee on Wednesday voted to maintain the coverage repo fee unchanged at 5.5%. 

• August 06, 2025 10:03

  We have taken decisive measures to help development: RBI Governor

• August 06, 2025 09:52

  Who does the MPC include?

  The MPC consists of three members from the RBI and three exterior members appointed by the federal government. 

  RBI members are: Sanjay Malhotra (Governor), Poonam Gupta (Deputy Governor), Rajiv Ranjan (Executive Director). 

  Three exterior members: Nagesh Kumar (Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi), Saugata Bhattacharya (Economist), Ram Singh (Director, Delhi School of Economics).

• August 06, 2025 09:36

  Reserve Bank might go in for a established order: Experts

  Experts are of the opinion that the Reserve Bank might go in for a established order this time and look ahead to extra macro information after the announcement by the U.S. to impose 25% tariff on Indian imports starting August 7.

  However, a bit of trade gamers do hope for a 25 foundation factors fee reduce on Wednesday.

  Vivek Iyer, associate and monetary companies threat chief, Grant Thornton Bharat opined that the RBI’s MPC assembly will see no fee reduce and cited causes for it.

  He stated the exterior setting continues to be too risky and unsure and there must be some extra time for the financial transmission to take impact.

  “The tariff uncertainty we consider was taken into consideration within the earlier fee reduce and therefore we don’t consider that the tariff scenario ought to considerably weigh in on the RBI choice,” Mr. Iyer stated.

  Praveen Sharma, CEO, REA India (Housing.com) stated that with the RBI having already frontloaded a 100 foundation level fee reduce this 12 months, the MPC is anticipated to take care of the established order within the upcoming coverage announcement.

  “While a decrease rate of interest setting is at all times a constructive, at this time’s homebuyers are more and more pushed by long-term confidence reasonably than short-term fee fluctuations. On their half, builders are sustaining momentum by providing versatile fee plans and good incentives that ease the monetary burden and improve purchaser affordability,” Mr. Sharma stated.

  PTI

• August 06, 2025 09:35

  RBI Guv Malhotra to announce choice on rate of interest on Wednesday

  Reserve Bank Governor Sanjay Malhotra will announce the third bi-monthly financial coverage of this fiscal on Wednesday amid expectations of pause on rate of interest after three consecutive discount totalling 100 foundation factors.

  Mr. Malhotra will announce the decision of the Monetary Policy Committee (MPC) at 10 am.

  The six-member panel, headed by Mr. Malhotra, began the three-day deliberation on the financial coverage on Monday. 

  PTI