RBI MPC Meeting 2025 Live Updates: RBI MPC Keeps Repo Rate Unchanged At 5.5%; Revises Real GDP Upwards To 6.8%

RBI MPC Meeting 2025 Live Updates: RBI MPC Keeps Repo Rate Unchanged At 5.5%; Revises Real GDP Upwards To 6.8%

RBI MPC Meeting, Repo Rate Cut Live Updates: The Reserve Bank of India (RBI) announced its monetary policy decision today, Wednesday, October 1, 2025. The fourth bi-monthly meeting of the Monetary Policy Committee (MPC) for FY26, chaired by RBI Governor Sanjay Malhotra, was held from September 29 to October 1, culminating in today's announcement of the repo rate decision.

The MPC meeting also follows the US Federal Reserve's first rate cut of 2025, which lowered its benchmark rate by 25 basis points to a range of 4–4.25%.

Previous MPC Decisions

The Reserve Bank of India's Monetary Policy Committee (MPC) has made significant moves in recent meetings to manage economic growth and inflation. In February 2025, the MPC cut the repo rate by 25 basis points, followed by another 25-basis-point reduction in April 2025, bringing the rate down to 6 per cent. In June 2025, the committee implemented a jumbo cut of 50 basis points, further lowering the repo rate to 5.5 per cent. However, in August 2025, the MPC decided to maintain the repo rate at 5.5 per cent, keeping its stance neutral.

The Reserve Bank of India (RBI) has revised the real GDP growth projection for this financial year 2025-26 upward to 6.8 per cent from the earlier estimate of 6.5 per cent, showing stronger-than-expected economic performance.

“There has been a significant moderation in inflation. Moreover, the prevailing global uncertainties and tariff related developments are likely to decelerate growth in H2:2025-26 and beyond. The current macroeconomic conditions and the outlook has opened up policy space for further supporting growth. However, the MPC noted that the impact of the front-loaded monetary policy actions and the recent fiscal measures is still playing out. The trade related uncertainties are also unfolding. The MPC, therefore, considered it prudent to wait for the impact of policy actions to play out and greater clarity to emerge before charting the next course of action. Accordingly, the MPC unanimously voted to keep the policy repo rate unchanged at 5.5 per cent. The MPC also decided to retain the stance at neutral. However, two members – Dr. Nagesh Kumar and Prof. Ram Singh, were of the view that the stance be changed from neutral to accommodative,” said the MPC statement.

RBI Repo Rate Cut News Live: To reduce the cost of financing to the infrastructure sector by NBFCs, RBI decides to reduce risk weights, says Malhotra.

RBI Repo Rate Cut News Live: “The real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. As the sector continues to benefit from improved buyer sentiment and strong housing demand, we were looking forward to a supportive stance from the RBI in the monetary policy during the ongoing festive season. A rate cut at this juncture would have been highly encouraging for homebuyers and developers alike, potentially boosting affordability and further investments in the sector. However, the decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms. We are hopeful that the real estate sector's growth momentum will continue to accelerate further and drive long-term momentum for home ownership, and contributing positively to overall economic expansion. As we move ahead, we would definitely welcome further rate cuts in the near term to build confidence in the market,” said Ramani Sastri – Chairman & MD, Sterling Developers.

The RBI has proposed allowing banks to lend in Indian rupees to non-residents in Nepal, Bhutan, and Sri Lanka for cross-border trade, aiming to boost rupee-based transactions.

It also plans to establish a transparent reference rate for the currencies of India's major trading partners to facilitate such trade.

Additionally, the RBI intends to expand the use of Special Rupee Vostro Account (SRVA) balances by permitting investments in corporate bonds and commercial papers, enhancing flexibility and promoting deeper integration of the rupee in regional trade.

RBI Repo Rate Cut News Live: The export sector is a vital part of India's economy. To further strengthen the sector and enhance ease of doing business for them, we shall extend the time period for repatriation from foreign currency accounts of Indian exporters from one month to three months.

Increase the period for forex outlay for merchanting trade transactions from four months to six months and simplify the process of reconciliation of outstanding entries related to exports and imports in the respective reporting portals.

RBI Repo Rate Cut News Live: RBI now holds a record 880 metric tonnes of gold, valued at over Rs 4.32 lakh crore ($71 billion), informs RBI Governor.

Measures to improve credit flow to the real economy have been proposed, including an enabling framework for Indian banks to finance acquisitions by Indian corporations. It is also proposed to remove the regulatory ceiling on lending against listed debt securities to enhance lending flexibility. Regarding urban cooperative banks (UCBs), given positive developments in the sector, the Reserve Bank plans to publish a discussion paper on licensing new UCBs.

Since 2004, licensing of urban cooperative banks has been on hold, and in response to growing demands from stakeholders, this proposed paper aims to review and explore the framework for granting fresh licenses to UCBs.

RBI Repo Rate Cut News Live: Total of 100 bps rate cut this year have led to 58 bps reduction in fresh loans: RBI Governor

RBI Repo Rate Cut News Live: India's forex reserves at USD 700.2 billion, enough to cover 11 months of imports, says RBI Governor.

RBI Repo Rate Cut News Live: The RBI Governor stated that strong remittance inflows are expected to help keep the current account deficit at a sustainable level in the current fiscal.

“Economic activity has remained resilient, with growth of real GDP surprising on the upside at 7.8% and GVA at 7.6% for Q1 this year. As suggested by high frequency indicators available so far, domestic economic activity continues to sustain momentum, even in Q2,” said RBI governor Sanjay Malhotra.

Sensex up over 150 pts after RBI MPC maintains status quo on rates; Nifty above 24,650

“Global economy has been more resilient than anticipated, with robust growth in the US and China. The outlook, however, remains clouded amidst elevated policy uncertainty. Inflation has remained above respective targets in some advanced economies, posing fresh challenges for central banks as they navigate the shifting growth inflation dynamics, financial markets have been volatile. The US Dollars strengthened after the upward revision of US growth numbers for the second quarter,” said RBI governor Sanjay Malhotra.

“Overall, India's external sector continues to be resilient, and we remain confident of meeting our external obligations comfortably, not withstanding the robust domestic macroeconomic fundamentals. The rupee has witnessed some depreciation by accompanied by phases of volatility. We are keeping a close watch on the movements of the rupee and will take appropriate steps as warranted,” said RBI governor Sanjay Malhotra.

“Overall, the inflation outcome is likely to be softer than what was projected in August, primarily on account of the GST rate cuts and benign food prices. CPI inflation for this year is now projected at 2.6%; with Q2 and Q3 at 1.8%, Q4 at 4% and Q1 next year at 4.5%. The risks are evenly balanced,” said RBI governor Sanjay Malhotra.

Core inflation stood at 4.2%, indicating that underlying price pressures remain largely contained.

Real GDP growth for the year has been revised upward to 6.8% from the earlier estimate of 6.5%, reflecting stronger-than-expected economic performance.

“The implementation of several growth inducing structural reforms, many of which were announced by the Honourable PM on 15th August, including the streamlining of GST, are expected to offset some of the adverse effects of the external headwinds,” said RBI governor Sanjay Malhotra.

“The MPC observed that the overall inflation outlook has turned even more benign in the last few months due to a sharp decline in food prices and the rationalization of GST rates, average headline inflation for this year has been consequently revised lower from 3.7% which was projected in June, 3.1% in August, to now 2.6%. So headline inflation for Q4 this year and Q1 next year have been revised downwards and are broadly aligned with the target, despite unfavorable base effects,” said RBI governor Sanjay Malhotra.

“Growth continues to be below our aspirations, even though the growth projection for the current financial year is now being revised upwards, the forward looking projections for Q3 and beyond are expected to be slightly lower than projected earlier. This is primarily due to trade-related headwinds, despite being partially offset by the impetus provided by the recent GST reforms,” said RBI governor Sanjay Malhotra.

The overall inflation outlook has turned notably more benign in recent months, with headline inflation being revised down from 3.7% in June to 3.1% in August, and further to 2.6% most recently.

“The rationalization of the GST is likely to have a sobering impact on inflation, while at the same time stimulating consumption and growth,” said RBI governor Sanjay Malhotra

The Reserve Bank of India (RBI) has announced that Governor Sanjay Malhotra will reveal the outcome of the Monetary Policy Committee's (MPC) October meeting at 10 am on Wednesday. The announcement will be streamed live on the RBI's YouTube channel, official website, and X account.

An SBI research document has advocated for a 25 bps interest rate reduction, describing it as the ‘best possible option' for the RBI, whilst other analysts suggest the central bank's monetary committee might maintain current rates in its bi-monthly review on October 1.

The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, will commence a three-day policy discussion on Monday amidst current geopolitical strains and American implementation of 50 per cent duties on Indian exports.

Dharmakirti Joshi, Chief Economist at Crisil Limited, stated: “We expect that a repo rate cut could come as soon as October due to lower-than-expected inflation. Core inflation, which indicates excess demand pressure, remains low by historical standards despite the significant impact of rising gold prices.”

The impending GST rate adjustments are expected to help drive inflation down further, according to his assessment.

“Moreover, the recent decision by the US Federal Reserve to lower its funds rate by 25 basis points, along with an anticipated additional 50 basis points of cuts this year, provides the RBI's Monetary Policy Committee with some flexibility to make adjustments,” Joshi said.

Stocks in interest rate sensitive sectors, including auto, banks and real estate traded higher ahead of the RBI policy and repo rate decision. Nifty Auto index gained 0.4%, Nifty Realty jumped 0.8%, while Nifty Bank also traded higher.

The Indian stock market opened flat on Wednesday ahead of the RBI monetary policy announcement. The Sensex opened 94.38 points, or 0.12%, lower at 80,173.24, while the Nifty 50 opened at 24,620.55, up 9.45 points, or 0.04%.

We are hopeful of a rate cut as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy. However, for the intended benefits to materialize, the transmission of the reduced rates must also be faster, ultimately benefiting the real estate sector and contributing positively to overall economic expansion, said Ramani Sastri, Chairman & MD, Sterling Developers.

In the August policy meeting, the MPC had kept the repo rate steady at 5.50%, having already frontloaded monetary easing through a rate cut and a 100 bps reduction in the cash reserve ratio (CRR). The policy stance was also retained as ‘Neutral'.

RBI MPC Meeting Live Updates: While the market expectation on the RBI policy is mixed, the recent tighter financial conditions caused by domestic and global factors, and the pending India-US trade deal, the RBI's decision to hold the rate with a softer guidance will be positively seen by the market, said Deepak Agrawal, CIO – Debt, Kotak Mahindra AMC.

RBI MPC Meeting Live Updates: India's external debt rose 1.5% ($11.2 billion) in Q1 to $747.2 billion, with over 93% covered by foreign‑exchange reserves, according to RBI data.

RBI MPC Meeting Live Updates: The RBI's MPC is expected to maintain the repo rate at 5.50% in its upcoming meeting on October 1, 2025. The MPC's decision is also likely to be influenced by external risks, including the 50% US tariffs on Indian exports, rupee depreciation, and geopolitical tensions. These factors have increased uncertainty around trade and capital flows. While the recent US Federal Reserve rate cut provides some room for easing, the RBI may prefer to wait for more clarity before acting, said Sankar Chakraborti, MD & CEO, Acuité Ratings & Research.

RBI MPC Meeting Live Updates: Capital Economics predicts RBI might cut in October and again in December, driven by trade shocks and a benign inflation outlook.

Source: News18
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