RBI MPC meeting to start today, the announcement of the policy rate on Wednesday

The focus of the meeting will be on assessing the current state of the economy and determining whether changes are required in the most important policy rates to support growth while inflation is managed. | Photocredit: Reuters

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) today starts with his three -day meeting in Mumbai to decide on the policy rates. The members of the committee will come together to discuss and deliberate the repo rates and to revise the prevailing economic circumstances before they reach a decision.

The meeting is planned to continue for three days, after which the announcement of the outcome of the monetary policy will be made on Wednesday 1 October. The focus of the meeting will be on assessing the current state of the economy and determining whether any changes are required in the most important policy percentages to support growth in managing inflation.

RBI Governor Sanjay Malhotra will announce the outcome of the meeting on Wednesday at 10 am. The announcement will provide clarity about the committee’s decision with regard to the repo rates and other related policy measures. The outcome of monetary policy is closely monitored by markets, companies and policy makers for the impact on loan costs and overall economic activity.

In the August policy meeting, in a unanimous decision, the RBI MPC kept the Repo rate unchanged at 5.5 percent.

According to a report from State Bank of India (SBI), the Monetary Policy Committee (MPC) can announce a 25 basic points (BPS) in this policy meeting, because this is the best possible option at this stage. The report emphasized that there are both merit and reason to reduce a rate reduction in September, because inflation remains under control and the outlook suggesting further moderation. It stated: “The communication of the central banks without cacophony is a policy instrument for itself in the midst of all chaos. Don’t feel like committing a type 2 error (no rate reduction with a neutral position) in September. A 25 BPS rate reduction in September is the best possible option for RBI.

“The SBI report emphasized that after June, the bar for tariff reductions became higher, and such a decision required calibrated communication by the central bank. It emphasizes that inflation is expected to remain good, even in FY27. Without any goods and service tax (GST) gear, inflation is already below 2 percent in September and October.

CPI numbers for FY27 are now an estimated 4 percent or less recorded. With GST rationalization, October CPI could get closer to 1.1 percent, which would be the lowest since 2004.

Published on September 29, 2025