The RBI announced its Monetary Policy Committee (MPC) decision on Wednesday. Ahead of it, borrowers and homebuyers were waiting to see if loan rates would move, following the earlier cuts this year.
The meeting began on August 4, following three rate cuts in 2025. In February, the RBI lowered the repo rate by 25 basis points to 6.25%, its first reduction in nearly five years. A similar cut followed in April. In June, the central bank moved more sharply, reducing the rate by 50 basis points to 5.5 per cent.
These steps had already given borrowers some relief through smaller EMIs. Many had hoped for another cut in August, but several analysts had expected the RBI to pause.
Global conditions added to the caution. Recently announced US tariffs introduced fresh uncertainty in financial markets, making it more likely that the central bank would wait before taking any further steps.
Piyush Bothra, Co-Founder and CFO of Square Yards, had said, “Given the front-loaded rate cut in June and ongoing global uncertainties, particularly the recently announced US tariffs, we expect the central bank to maintain the current 5.50% repo rate. While an immediate cut may not happen, there is still a strong chance of a 25 bps rate cut in October, especially if the central bank wants to give a festive season boost to the housing market.”
Bothra also noted that while an immediate cut was unlikely, the earlier reductions had not yet been fully passed on by banks and non-banking lenders to their customers. He pointed out that the RBI could push institutions to transmit these benefits more effectively. He further added that there remained a chance of another 25 basis point reduction later in the year, possibly in October, which could give the housing sector a boost during the festive season.
The RBI released the policy statement at 10 am. It was streamed on the central bank’s YouTube channel and other social media platforms. A press conference was held after the statement. Governor Malhotra spoke about inflation, growth and the path of interest rates.
Borrowers and homebuyers kept a close eye on the policy. The decisions taken in August were expected to guide lending rates in the months ahead.
Read more through the links below to uncover the key trends and market leaders driving this growth:
India Today: http://bit.ly/3Hdj5gW
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Fortune India: http://bit.ly/3HboZiD
The Financial Express: http://bit.ly/41hgHwz
The New Indian Express: http://bit.ly/3HfjXle
TV9 Hindi: https://bit.ly/45pqJg
Realty+: https://bit.ly/3UhWYZx
BusinessWorld: https://bit.ly/3UO77xj
Published Date: 6 Aug, 2025
