RBI MPC Meeting 2025: The Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) has started from 3rd today and this meeting will continue till 5th December. This committee of six members is being headed by the new RBI Governor Sanjay Malhotra. In this meeting, decisions will be taken on repo rate, condition of money in the market, inflation forecast in the coming time and the target of economic growth of the country and RBI Governor Sanjay Malhotra will give his decision regarding this on December 5. If the repo rate is reduced this time, it will reduce the burden on the common man’s pocket.
In the October MPC meeting, the RBI committee had decided to keep the repo rate at 5.5%, that is, there was no change. Governor Sanjay Malhotra said that inflation has come down considerably, hence the committee is confident that it would be right to keep the rates the same. Meaning, there is currently no major change in the loan EMI and loan installments in October.
Will the repo rate reduce this time?
In the last meeting, RBI had reduced the inflation target estimate for this financial year to only 2.6%, which was earlier 3.1%. This means that inflation is going to be much lower than before. In the August meeting also the estimate was reduced from 3.7% to 3.1%. This means that inflation figures are continuously coming down, due to which the common man will be less worried about rising prices of goods and interest rates are also expected to come down soon.
A new report by credit rating company CareEdge says that the biggest impact on the upcoming RBI monetary policy meeting in December is the rapid decline in inflation. The domestic situation is still strong, but America has imposed tariffs of up to 50% on Indian goods and trade deals are still under discussion, this is a matter of great concern. That means everything looks fine from inside, but external pressure can influence the decision to reduce the repo rate.
The analyst gave this information
RBI can reduce the repo rate by 0.25 percent i.e. 25 basis points in the December monetary policy. Currently the repo rate is 5.5 percent, if this much cut is made then it will directly come down to 5.25 percent. This means that the loan taken from the bank and the EMI of the house and car may become a little cheaper and this can be a good news for the common people.
According to CNBC report, some experts believe that RBI will not make any changes in interest rates now because the pace of the economy has picked up again. The government has reduced expenses, invested money in the right places and also reduced GST rates, due to all this the growth has remained strong. That’s why many people are saying that it is too early to reduce the repo rate, it is better to wait a little.
On the other hand, some experts believe that inflation has reduced so much that now it can be reduced by 25 basis points. For the last two months, retail inflation has been running below the lower target of 2% set by the government. HDFC Bank’s report clearly states that this year the growth has increased more than expected and inflation has been much lower than expected. Now it remains to be seen which way RBI leans.
The new report of the research team of State Bank of India says that when the GDP is growing very fast and inflation is almost over, now it is the responsibility of the RBI to clearly tell in the MPC meeting to be held this week, what will be the path of interest rates going forward. Also, a neutral stance should still be maintained.
