Archive · 30 Sep 2025
RBI Weighs Rate Decision Amidst Inflation, Growth Concerns
The Reserve Bank of India (RBI) is meeting to decide if they should change a key interest rate called the repo rate.
Some experts think the rate will stay the same, while others suggest a small cut.
The main things they're considering are how much prices are rising (inflation) and how fast the economy is growing.
Inflation is below the target, and growth was strong last quarter.
Global events also play a role.
The decision, expected on October 1, will affect how much it costs to borrow money.
The RBI's MPC meeting began on September 29 to discuss the repo rate.
Experts are divided on whether to hold the current rate or implement a 25 bps cut.
Inflation rose to 2.07% in August, still below the RBI's 4% target.
India's GDP grew by 7.8% in the June quarter, exceeding expectations.
Factors like inflation, economic growth, and global conditions will influence the decision.
- Who
- RBI Monetary Policy Committee (MPC)
- What
- Meeting to decide on the repo rate
- When
- September 29 - October 1, 2025
- Where
- India
- Why
- To determine monetary policy and balance growth and inflation
25 bps Rate Cut
Hold at Current Rate
Justification
25 bps Rate Cut
SBI report suggests a cut is the 'best possible option'.
Hold at Current Rate
Some experts believe the panel may maintain the status quo.
Economic Factors
25 bps Rate Cut
Based on expectations of a downward revision in inflation projections for FY26 due to GST reforms and a good monsoon.
Hold at Current Rate
Current inflation, slowing growth and other trends.
- Meeting Dates
- September 29 - October 1, 2025
- Current Repo Rate
- 5.50%
- August Inflation
- 2.07%
- RBI Target Inflation
- 4%
- GDP Growth (June Quarter)
- 7.8%
Sources
Repo rate fell, but loans stayed costly: How RBI rate cuts have been lost in transmission so far
RBI may go for 25 bps rate cut as inflation likely to remain benign: SBI Research report
Low probability of rate cut in Oct as underlying factors holding good: Experts
RBI’s Monetary Policy Committee faces a close call
RBI Monetary Policy: Why repo rate is likely to remain unchanged in October
RBI MPC: Will A 25 bps Rate Cut Happen Or Is Status Quo More Likely? Experts Divided Ahead Of Oct 1 Decision
GST collection may see a hit in Sept-Oct, but expect strong rebound soon
RBI should go for 25 bps cut in key policy rate: SBI Research
Fresh loan rates start hardening
RBI May Hold Rates On Oct 1
RBI monetary policy meeting: mixed views on repo rate pause or 25bps cut in october 2025
GST 2.0: Q2 sales to see a dip, but companies project firm demand going ahead
Before economy slows, cut the rate
RBI Likely To Cut Rates By 25 bps With Inflation Under Control: SBI Research
RBI MPC Meeting To Begin Today, Policy Rate Announcement On Wednesday
RBI MPC meeting to begin today, policy rate announcement on Wednesday
RBI MPC meeting begins: Will the central bank hold or cut rates? Nuvama sees rate cut later this year
RBI MPC Meeting Starts Today: Will Repo Rate Change On Wednesday? Know What Economists Expect
Yet another pause in repo rate? It's a close call for MPC
Funding is available, yet private capex is tepid: Why businesses are cautious
RBI MPC begins deliberations, economists predict 25 bps rate cut
India's borrowing revamp shrinks 10-year, long bond yield spread
GST cuts solve only a third of the banks' problems
RBI To Keep Repo Rate Unchanged At 5.50% In Upcoming Monetary Policy Committee Meeting: Bajaj Broking Report
RBI MPC: Will holding rates steady further weigh on Indian stock market sentiment?
RBI MPC meeting begins: hold or 25 bps rate cut?
