RBI MPC Meeting: Schedule for FY 2025-26 Monetary Policy Meetings

The Reserve Bank of India (RBI) announced its first monetary policy decision under the leadership of Governor Sanjay Malhotra in August 2025. In the latest RBI MPC Meeting 2025, the Monetary Policy Committee (MPC) has decided to hold the repo rate at 5.50%, after cutting it by 50 basis points back in the June 2025 meeting. 

Key Takeaways from RBI MPC Meeting August 2025

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Policy Decision: Repo Rate & Stance

The MPC opted to hold the repo rate at 5.50%, for now maintaining the stance at Neutral, following three consecutive rate cuts totalling 100 bps since February 2025. This pause allows time to assess the full impact of prior easing on macro conditions without compromising inflation stability.

Macro Outlook: Inflation & Growth

• Retail inflation continued to moderate in June, easing to an eleven‑quarter low of 2.10%, giving RBI room to hold steady.
• GDP growth remains robust—India saw 7.4% year-on-year expansion in Q1 2025, and RBI retains its FY26 forecast at around 6.5%.

Rationale Behind the Pause

While inflation is well within acceptable bounds, growth headwinds persist—most notably from U.S.-imposed tariffs, subdued demand, and soft business confidence despite healthy PMI readings. Analysts judge that while further easing could happen later in the year, current data do not yet justify an immediate cut.

Market & Expert Reactions

• Markets largely expected a hold, with rate cuts fully priced in earlier rounds but no major downward surprise flagged.
• Some economists, such as those from ANZ and Barclays, still see room for easing before year-end if growth softens or inflation continues to undershoot projections.

Liquidity Management & Forward Guidance

No additional CRR adjustments were announced in August, but RBI continues to monitor liquidity closely given the phased reduction underway since June. The revised liquidity framework may be unveiled in parallel with commentary in coming months.

Strong Fundamentals in the Banking Sector

The Reserve Bank of India reaffirmed its confidence in the strength and resilience of the Indian banking system. As per the latest data, the Capital to Risk-Weighted Assets Ratio (CRAR) for scheduled commercial banks stands comfortably above regulatory requirements at 17.2%, reflecting a well-capitalised banking landscape. Meanwhile, the Net Interest Margin (NIM) holds steady at 3.5%, indicating healthy core profitability. Notably, the Gross Non-Performing Asset (GNPA) ratio has declined to a multi-year low of 2.2%, underscoring improved asset quality across the system. Liquidity buffers remain robust, with the Liquidity Coverage Ratio (LCR) at 132%, well above the mandated threshold. The credit-deposit ratio is also stable at 78.9%, signalling balanced credit growth without undue stress on funding sources.

Here's a summary comparison of the last two RBI MPC Meetings:

RBI MPC Meeting Schedule for FY 2025-26

The following table outlines the upcoming schedule for the RBI Monetary Policy Meetings for the financial year 2025-26. 

Implications of the Rate Cut

With the repo rate on pause, borrowers may not see immediate relief this August—but earlier cuts already promise lower rates. Businesses and consumers should continue to benefit from improved credit conditions. Meanwhile, a neutral policy stance indicates RBI will wait for fresh data before deciding on further easing.

Stay tuned for updates on RBI’s liquidity measures and future MPC meetings in FY26.