RBI changed the date of the next MPC meeting: will be from 4 to 6 August instead of 5-7 August; Bank controls inflation by meeting

RBI has cut the repo rate by 0.50% in the second meeting on 6 June.

The Reserve Bank of India (RBI) has changed the date of its next Monetary Policy Committee (MPC) meeting. Now this meeting will be held from 4 to 6 August instead of 5-7 August 2025. The RBI has made this change, citing administrative reasons, issuing press release on 6 June.

In March, the Reserve Bank issued a schedule of 6 meetings of the FY 2025-26 Monetary Policy Committee (MPC). There have been two meetings of this financial year. Of these, the first meeting was held from 7-9 April and the second meeting between 4 to 6 June.

Repo rate reduced by 3 times this year, 1% cut

The RBI had reduced the interest rates from 6.5% to 6.25% in the meeting held in February. This deduction was done by the Monetary Policy Committee after about 5 years.

The interest rate was reduced by 0.25% in the meeting held in April for the second time. The rates have been cut for the third time in June. That is, the Monetary Policy Committee has reduced interest rates by 1% at three times.

In June meeting, interest rate reduced by 0.50%

In the second meeting on June 6, the RBI has cut the rate of debt to banks by 0.50% in the second meeting. Now the repo rate is 5.50%. This will give banks loans at low interest from RBI.

If banks transfer this deduction in interest to their customers, then loans may be cheap in the coming days. When the loan is cheap, the existing EMI of the people will also be reduced.

The decision to cut the interest rates was taken in the meeting of the Monkey Policy Committee from June 4 to 6. RBI Governor Sanjay Malhotra gave information about this on the morning of 6 June.

Understand the effect of interest cuts from example

The rate at which RBI gives loan to banks is called repo rate. It is increased to control inflation.

After the latest deduction, a loan of ₹ 20 lakh taken for 20 years will get a benefit of about ₹ 1.48 lakh. Similarly, ₹ 2.22 lakh will benefit on a loan of ₹ 30 lakh. Both new and existing customers will benefit from this.

What is the Monetary Policy Committee?

The Monetary Policy Committee consists of 6 members. Of which 3 are of RBI, while the rest are appointed by the central government. The committee has been tasked to set major interest rates in addition to creating a monitory policy to ensure price stability.

The repo rate, which determines the loan and deposit rates of banks, is fixed during the MPC meeting. This meeting usually takes place every two months. Dual and economic conditions are announced after discussion on domestic and economic conditions. MPC’s decisions are important in helping the government to keep the currency in a stable position and control inflation.

Member of current MPC