By Martin Shwenk Leade

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ET OnlineRBI MPC Meeting 2025-26 Key Takeaways

The Reserve Bank of India (RBI) is announcing its Monetary Policy Committee (MPC) decision today, Wednesday, 1 October 2025. This crucial meeting will set the tone for interest rates, inflation management, and economic growth projections for FY26. Analysts are closely watching whether the repo rate will remain on hold or see a modest cut amid low inflation and global economic uncertainties.As soon as the announcements are out, we will provide full highlights of the RBI MPC decision, including key takeaways for borrowers, investors, and businesses.Repo Rate: Hold or Cut?Most economists expect the repo rate to stay at 5.5%, though a few predict a 25-basis-point reduction. Even those favouring a hold acknowledge there is room to ease rates given the subdued inflation and signs of slowing growth.Bank of Baroda experts note that while a quarter-point rate cut would be a positive surprise, the RBI is likely to maintain its cautious stance due to the rupee’s record lows and global economic pressures.Inflation and Growth OutlookInflation remains near the lower end of the 2%–6% target band, aided by recent tax cuts and a favourable monsoon. This provides some leeway for monetary easing, but growth concerns, especially from rising global trade tariffs, make any immediate cut a careful decision.Live EventsEven if the RBI lowers rates by 25 bps, analysts expect GDP forecasts for FY26 to remain unchanged, as monetary policy effects usually take 2–3 quarters to fully reflect in the economy.Dovish Tone ExpectedWhile the repo rate may remain steady, the RBI is expected to take a dovish tone in its commentary. Economists anticipate a trim in FY26 inflation projections by around 50 basis points, which could ease bond yields and provide some market relief, while keeping the overall stance neutral.Investors and businesses will be looking for clues about future policy direction, including the potential for further repo rate cuts later in the fiscal year. Some analysts see room for the repo rate to drop as low as 5% if conditions worsen.What This Means for Borrowers and InvestorsThe RBI’s MPC decision today will influence interest rates, credit costs, and investment sentiment. Borrowers may see short-term stability in loan rates if the repo rate is held, while investors will watch the RBI’s inflation guidance and growth outlook closely for market signals.This article provides a comprehensive preview of the RBI MPC meeting. Stay tuned, as we will update with full highlights immediately after the announcement.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onrbi repo rate todayrbi mpc meeting 2025sanjay malhotra monetary policyrbi interest rate updaterepo rate decision october 1fy26 economic forecastrbi inflation projectionrbi policy highlightsindia monetary policy newsrbi rate cut possibility(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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