Archive · 3 Aug 2025
CareEdge Predicts RBI to Hold Lending Rate Steady in August
The Reserve Bank of India (RBI) is likely to keep interest rates the same for now, according to CareEdge.
They think the RBI has already cut rates enough recently.
Experts are watching how things like US trade policies will affect the economy.
Inflation has been going down but is expected to go up again.
They believe the RBI will wait and see before making any more changes to interest rates.
The economy has slowed down but the rate cuts made earlier haven't been fully felt yet.
RBI is likely to hold the key lending rate steady.
CareEdge anticipates a pause in further rate cuts.
Inflation is expected to breach 4% in Q4 2025-26.
US tariff uncertainties and trade policies may influence the decision.
RBI has already reduced the repo rate by 100 basis points since February 2025.
- Who
- RBI, CareEdge, Monetary Policy Committee (MPC).
- What
- RBI expected to pause key lending rate.
- When
- August 4-6, 2025, at the next monetary policy review meeting.
- Where
- India
- Why
- Due to the moderation in inflation, US tariff uncertainty and the recent rate cuts.
Rate Cut Supporters
Rate Hold Advocates
Monetary Policy
Rate Cut Supporters
Further rate cuts may be needed.
Rate Hold Advocates
Hold the current rate
- Next Policy Meeting
- August 4-6, 2025
- Repo Rate Reduction
- 100 basis points since February 2025
- CPI-based retail inflation (Q4 2025-26)
- Expected to breach 4%
- Real Policy Rate
- 1-1.5% at current repo rate
- RBI stance
- Pause further rate cuts.
Sources
RBI may announce 25 bps rate cut in August MPC meet: Report
RBI Poised for 25 BPS Repo Rate Cut Ahead of Early Diwali, Says SBI
SBI calls for 25 bps cut now says RBI move could light up an early Diwali boom
RBI monetary policy: Is a rate cut coming on August 6? Economists weigh in
Prospective home loan borrowers turn smart, delay borrowing decisions to benefit from interest rate downcycle
What’s shaping the bond market landscape?
Expect pause in next policy meeting, RBI already frontloaded rate cuts: CareEdge
