RBI MPC meeting: The Reserve Bank of India (RBI) governor Sanjay Malhotra on Wednesday said that the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 5.5% in the August monetary policy review. From a loan borrowers perspective this means that your there is no further repo rate cut relief for your EMIs.RBI-led MPC has cut the repo rate by 100 basis points this year. The 1% repo rate cut has not yet been fully transmitted in terms of much lower EMIs for loan borrowers. In the coming months, the lower repo rate is expected to translate into much lower monthly loan instalments for borrowers.“The coordinated use of various tools available to us has helped accelerate monetary policy transmission in the current easing cycle, the Monetary Policy Committee, MPC, met on the fourth, fifth and sixth of August to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic and financial developments and Outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility unchanged at 5.5%,” said RBI governor Sanjay Malhotra.“Monetary policy transmission is continuing. The impact of the 100 basis points rate cut since February 2025, on the broader economy is still unfolding on balance. The current macroeconomic conditions outlook and the uncertainties call for continuation of the policy repo rate of 5.5% and wait for further transmission of the front loaded rate cut to the credit markets and to the broader economy,” Malhotra said.RBI’s monetary policy comes at a time when US President Donald Trump has imposed a 25% tariff rate on India’s exports to America, with warnings of this being raised ‘very substantially’ for continued oil trade with Russia. Trump on Tuesday said that he would raise the tariff rate on India ‘very substantially’ in the next 24 hours because India has not stopped buying crude oil from Russia. Donald Trump administration officials have accused India of ‘financing’ Russia’s war against Ukraine through its oil trade.
