The Reserve Bank of India (RBI) Monetary Policy Committee will meet from September 29 to October 1. Most experts expect it to keep the repo rate the same for the second time in a row because the economy is growing well and inflation is under control. Some economists think there could be a cut in the repo rate. The meeting is chaired by RBI Governor Sanjay Malhotra. Six members are participating in the meeting which started on September 29 and will run until Wednesday, October 1. The outcome—including the MPC’s decision on the repo rate and other key policy measures—will be announced at a press conference on October 1.
RBI MPC Meeting Expectations
Economists broadly expect the MPC to maintain the status quo on policy rates, which would mark the second consecutive pause. Between February and June 2025, the RBI had lowered the repo rate by a cumulative 100 basis points (bps) to 5.5%, where it currently stands.
The six-member Monetary Policy Committee, led by Governor Sanjay Malhotra, has several challenges this week. Inflation is near the lower end of the 2%–6% target and may fall further after recent tax cuts. Economic growth could be hurt by US tariffs. A falling rupee and Malhotra’s cautious approach make cutting rates harder. The RBI has already lowered rates by 100 basis points this year.
Repo Rate To remain unchanged
Speaking on the possible impact of such a move with ANI, Bank of Baroda Economist Sonal Badhan noted that even if the RBI goes ahead with a 25 bps cut in October, the GDP forecast for FY26 is unlikely to see any revision. “Even if RBI decides to cut rate by 25bps, GDP forecast for FY26 is likely to remain unchanged as changes to monetary policy usually takes 2-3 quarters to show it’s impact on the real economy” she said.
