Home Loan Rates 2025: RBI MPC to Announce Repo Rate Decision at 10 AM
RBI monetary policy today: No repo rate cut expected, say experts, after June’s big 50 bps reduction. Watch live as Governor Malhotra announces the decision.
RBI MPC Outcome: Experts See Pause After 3 Rate Cuts in 2025
The Reserve Bank of India (RBI) will announce the outcome of its Monetary Policy Committee (MPC) meeting today, August 6, at 10 AM. Governor Sanjay Malhotra is set to deliver his fourth policy statement since assuming office earlier this year.
With the repo rate already reduced three times in 2025, borrowers across India are waiting to see if their home loan EMIs will fall further. However, experts say the central bank is likely to hit the pause button this time.
Three Rate Cuts Already in 2025
♦ February 2025: Repo rate cut by 25 bps → 6.25%
♦ April 2025: Another 25 bps cut → 6.0%
♦ June 2025: Aggressive 50 bps cut → 5.5%
The latest cut also came with a 100 bps reduction in the Cash Reserve Ratio (CRR), providing banks with more liquidity.
Experts Signal No Cut This Time
Atul Monga, CEO & Co-Founder, BASIC Home Loan, believes the RBI will keep rates steady.
“Following the aggressive 50 bps rate cut in June, a pause now would allow the full impact of earlier easing to flow through the system,” he said.
He noted that stability in interest rates would support predictability in the housing finance sector, a crucial factor for both lenders and borrowers.
Inflation is averaging 3.4%, well within the RBI’s comfort zone, while GDP grew 7.4% in Q1 FY26. According to Monga, these numbers give the central bank room to pause and assess the impact before considering further action later this year.
Global Uncertainty Weighs on Decision
Piyush Bothra, Co-Founder & CFO of Square Yards, echoed similar views, pointing to global factors.
“Given the front-loaded rate cut in June and the recently announced US tariffs, we expect the RBI to maintain the current 5.50% repo rate,” he said.
He added that while banks and NBFCs are yet to fully pass on the benefits of earlier cuts, the RBI could encourage them to do so now. Bothra suggested a possible 25 bps cut in October, timed with the festive season, if inflation remains benign.
Housing Market Outlook
Stable rates are expected to keep momentum in the real estate sector. Experts say demand for affordable and mid-income housing could benefit if banks pass on previous rate cuts to customers.
The RBI’s announcement will be streamed live on its official YouTube channel and social media handles, with updates also provided by the Press Information Bureau (PIB). A press conference will follow, where Governor Malhotra will elaborate on inflation, growth, and the outlook for interest rates.
