Repo rate review: My Bet: 'no change'
Repo Rate Review Aug 25: My take: Status quo The bi-monthly review meeting of the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) is underway (Aug 4-6) and the RBI Governor is expected to announce the decisions of MPC on 6th August 2025. I predict the MPC may call a 'pause' in the repo rate and also maintain the status quo in the policy stance (neutral). I do not expect any new liquidity easing measures in the short term. Positive factors: There cannot be a more favourable domestic condition than now to expect the 'repo reduction rate series' to continue for the fourth time in a row. Inflation for June (2.1%) is at the lower band of the inflation target rate of 4%(+or-2%). The monsoon is good so far and apparently there are no worries of any shortage in the agriculture produce to induce a supply side inflation. Crude oil prices are still around USD 65 per barrel with no indications that the price will rise due to war and 'Trump effects'. The forex...