RBI Set to Announce Rate Decision on August 5, Hold Widely Expected

The Reserve Bank of India's six-member Monetary Policy Committee began its three-day meeting on Monday, with Governor Sanjay Malhotra scheduled to announce the outcome at 10 am on August 5, followed by a press conference. Economists and market participants overwhelmingly expect the central bank to keep the benchmark repo rate unchanged at 5.25% for a fourth consecutive review while retaining its neutral policy stance. The rate has held steady since June, after cumulative cuts of 125 basis points in 2025. Policymakers are weighing resilient domestic growth against rising inflation, elevated crude oil prices and geopolitical tensions. Analysts expect the RBI to keep its FY27 GDP growth projection near 6.6% while preserving flexibility to act later if price pressures persist. Investors will focus on the central bank's updated commentary on inflation, liquidity, growth and external risks, as well as any guidance on measures to support foreign capital inflows and the rupee. A pause would leave borrowers with floating-rate home, vehicle and personal loans facing steady EMIs, while a future cut could gradually lower repo-linked lending rates.