RBI MPC Meeting October 2025 HIGHLIGHTS: Status quo on policy, stance as expected; GDP, inflation projections tweaked

RBI MPC October Review LIVE: Policy measures positive for market, banking, nation, says Atul Joshi

The latest RBI announcements are positive for the market, banking as well as the country, says Atul Joshi of Oyster Capital. 

The measures are set to impart long lasting effects, he says.

RBI MPC Review LIVE: October policy a mixed bag, says Gurmeet Chadha

In an interaction with market guru Anil Singhvi, Complete Circle Wealth's Gurmeet Chaddha says that the latest RBI announcements are a mixed bag.

The RBI has mentioned a rate transmission of just 58 basis points after the benchmark rate cuts of 100 bps, which seems problematic, according to Chaddha.  

However, the market expert says that the RBI's risk-weight announcements are positive for NBFCs. 

MPC October LIVE Update: RBI to allow non-residents in three countries to send money in rupee

The RBI governor announces steps to internationalise the domestic currency. 

These countries are: 

• Bhutan 
• Nepal 
• Sri Lanka 

RBI MPC Review LIVE: FY26 consumer inflation projection cut to 2.6%

The RBI has lowered its retail inflation projection from 4.0 per cent to 2.6 per cent. 

Consumer inflation -- also known as retail inflation -- is gauged by the Consumer Price Index (CPI). 

RBI MPC Review LIVE: FY26 GDP growth forecast raised to 6.8%

The RBI has revised upwards its annual GDP projection to 6.8 per cent from 6.5 per cent, says the RBI chief. 

RBI MPC October Review LIVE: Above-average monsoon to continue to aid rural demand, says RBI governor

The rural economy is expected to remain strong in the coming months owing to above-average monsoon rains, says Sanjay Malhotra.  

RBI MPC October Review LIVE: Economy to stay strong in Q2

The domestic economy is estimated to stay strong in the fiscal second quarter, says the RBI chief. 

Official data on GDP changes in the July-September quarter is due at the end of November. 

RBI MPC October Review LIVE: Policy stance remains 'neutral'

The decision to continue with the existing policy stance is unanimous, says the RBI governor. 

RBI MPC Review LIVE: BREAKING--No change in repo rate, MPC votes unanimously for status quo, announces Sanjay Malhotra

RBI MPC October Policy LIVE: Sanjay Malhotra says economic conditions point to strength, inflation moderate

RBI Governor Sanjay Malhotra says that the economy continues to exhibit strength by registering higher growth in Q1. 

There has also been a considerable moderation in inflation. 

D-Street Update | Headline indices make cautious gains; rate-sensitive stocks a mixed bag 

In the Nifty50 universe, top gainers in the very first few minutes of trade are Shriram Finance, Sun Pharma, Trent, M&M and DRL, trading between 0.8 per cent and 3.2 per cent higher. 

On the other hand, SBI Life, Eternal, HDFC Life, Infosys and Bajaj Finance -- trading between 0.6 per cent and 1.1 per cent lower -- are the worst hit among the 26 laggards in the 50-blue-chip universe.

Interest rate-sensitive pockets -- automobiles, real estate, financial services and consumer durables -- are staging mixed moves at this hour. Read more

Dalal Street Opening Bell | SEnsex rises over 50 pts, Nifty50 hovers around 24,625; Nifty Bank flat as investors await RBI action 

RBI MPC Review: Will there be a revision in GDP forecasts?

Two-thirds of the economists polled by Zee Business expect the MPC to tweak its GDP projections on October 1. 

Currently, the RBI expects GDP growth to average at 6.5 per cent for the financial year. 

RBI MPC Review: Can you expect revisions in inflation and GDP growth projections today?

None of the econonists polled by Zee Business expects the RBI's inflation projections to remain unchanged in the October 1 statement.

Its full-year projection for consumer inflation stands at 3.1 per cent for FY26, with 2.9 per cent in Q1, 3.4 per cent in Q2, 3.9 per cent in Q3 and 4.4 per cent in Q4. 

RBI October Policy Review: Key things to watch out for in policymakers' commentary

Other than the benchmark policy rates and macroeconomic projections, there are three main things that economists set to track closely:  

• Global risks emanating from Trump 2.0 tariffs
• Growth impulse from GST cuts
• Any mention of available room for future rate cuts 

RBI October MPC Review LIVE: What does 'neutral' policy stance mean?

 A 'neutral' stance of policy simply means that the MPC has not made up its mind on which direction should the benchmark rates move. What that means essentially is that it is not committed to either raising or lowering interest rates and that its decisions are going to be entirely data-driven as long as the stance remains.

The RBI takes into account a number of macroeconomic factors to gauge the country's economic position as well as the global financial environment to make that call.

The MPC can increase, decrease, or hold benchmark rates as long as it has the 'neutral' stance.

RBI October 2025 MPC Review: 2 main things that Monetary Policy Committee seeks to balance in its policy

The RBI tracks CPI data primarily to formulate its monetary policy. Its focus remains on containing inflation while ensuring robust economic growth, in sharp contrast to a temporary phase during COVID-19 when it prioritised growth over curbing inflation. 

In the August review, the RBI chief-led MPC revised its inflation projection to 3.1 per cent from 3.7 per cent, while maintaining its GDP growth forecast at 6.5 per cent for FY26. 

Typically, the RBI's rate-deciding panel cites "evenly balanced" risks behind its policy decisions. Read more

Repo rate adjustments quickly impact most new loans as well as deposits. Banks adjust their interest rates in accordance with these changes from time to time, communicating changes in EMIs or FD rates to their customers.

This is known as policy transmission -- which means the act of commercial banks passing on the benchmark rates to their customers.

Remember: The direct impact of hikes or cuts in the repo rate is typically seen on floating-rate loans -- auto, home or personal loans.

How do repo rate changes impact loan EMIs?

Most home, personal and auto loans in the country -- especially those that come with floating interest rates -- are linked to the repo rate. This mechanism is formally known as repo-linked lending rate (RLLR) or the external benchmark linked rate (EBLR). Now, let's take a look at the potential impact of these changes.

When the MPC raises the repo rate

The RBI governor-headed panel’s decision to raise the repo rate increases commercial banks’ borrowing costs. Typically, commercial banks then increase their lending rates, which means floating-rate loan customers now have to pay larger EMIs to continue servicing their loans.

When the MPC cuts the repo rate

The panel’s decision to cut the repo rate, as you may  have guessed, decreases the borrowing costs for commercial banks. Lenders can then reduce their loan rates, resulting in smaller EMIs for borrowers with floating-rate loans.

Did you know that repo rate impacts new FDs or FD renewals, not existing term deposits?

Changes in the repo rate don’t impact existing fixed deposits (FDs). Let’s say an active FD pays you 6.0 per cent interest per annum, compounded quarterly, and before the end of its term, the RBI cuts the repo rate by 50 bps.

Does this mean that you get less money on the very same FD?

No.

However, if your bank announces a lower rate on the same FD term, and you set up a new FD after the change, you will get lesser interest proportionately.   

FDs become more attractive as banks hike deposit rates, and vice versa.

RBI MPC Meeting October LIVE: Inflation off 8-year low may prompt policymakers to hold rates for now

One of the main reasons behind the MPC's possible decision today to delay a rate cut could be consumer inflation worsening to 2.07 per cent in August from an eight-month low of 1.55 per cent the previous month.

In line with the RBI's projections, the latest inflation reading is within the RBI's medium-term target range of 2-6 per cent -- or 200 basis points within 4.0 per cent. 

The RBI tracks CPI data primarily to formulate its monetary policy.

Its focus remains on containing inflation while ensuring robust economic growth, in sharp contrast to a temporary phase during COVID-19 when it prioritised growth over curbing inflation. 

RBI MPC Meeting October LIVE: Policymakers have already reduced repo rate by 100 bps so far in 2025

The RBI has already cut the repo rate by a cumulative 100 basis points in three tranches since February. 

This marks the steepest reduction in the post-pandemic era.

RBI MPC Meeting October Review LIVE: How much can you expect repo rate to decrease in FY26?

All of the economists who participated in the Zee Business poll expect 50 basis points of additional easing in the year ending March 2025. 

In the current financial year, the RBI has already reduced the repo rate by 75 basis points, and by 100 basis points in 2025 so far. 

RBI MPC October Review LIVE: Key things to know about economy before today's RBI announcements

Growth in the world's fourth-largest economy picked up to a five-quarter high of 7.8 per cent in the first three months of FY26, beating economists' expectations as well as the central bank's annual forecast. That data has cemented the country's position as the fastest-growing major economy across the globe.  

Some economists say that the RBI may choose to assess the impact of the GST 2.0 reform on domestic demand and its effect on economic growth, the potential influence of the additional 25 per cent US duty hike along with a 100 per cent levy on branded and patented pharmaceutical imports, and the pass-through of existing rate cuts on borrowing costs at least until the December review for further policy action. 

Read more

RBI MPC Meeting October 2025 Live: Most economists expect status quo on repo rate today

Two-thirds of the economists polled by Zee Business expect the MPC to keep the repo rate unchanged at the October review.

However, all participants expect the RBI's rate-deciding panel to keep its 'neutral' policy stance intact. 

Read more about their policy expectations here

RBI MPC Meeting Live: Sanjay Malhotra's speech due in less than 4 hours 

Starting at 10 am, the RBI governor delivers a short speech detailing the key policy decisions, announcing any revisions in the repo rate -- or the key lending rate at which the central bank lends short-term funds to commercial banks.

The RBI chief also makes public the RBI's outlook on inflation and economy, as it strives to strike a balance between the two. 

His speech is followed by a customary, post-policy interaction with the media at noon. 

RBI MPC Meeting Today Live Updates: RBI kicked off October review on Monday

Typically, the RBI's top brass announces the key decisions on the third day of its scheduled reviews, as it meets six times a year to formulate the monetary policy for the economy. 

The current MPC meeting is the fourth of the current financial year. 

At the last review, which took place in August, the MPC decided to hold the repo rate -- or the key interest rate at which it lends short-term funds to commercial banks -- unchanged at 5.5 per cent while maintaining a 'neutral' policy stance that enables it to revise the key lending rate in either direction.