Mumbai, September 29 (HS): The three-day bi-monthly monetary policy review meeting of the Reserve Bank of India’s Monetary Policy Committee (MPC) commenced here on Monday under the chairmanship of RBI Governor Sanjay Malhotra. The committee will assess prevailing economic conditions before taking a call on key policy rates, including the repo rate.

The final decisions will be announced on October 1.

According to official sources, economic experts widely expect the central bank to cut the benchmark repo rate by 0.25% in this review. A recent report by the State Bank of India suggested that such a move would be justified, given the continued easing of retail inflation and a positive outlook for fiscal year 2026–27.

Notably, the RBI has already reduced the repo rate by a total of 1% since February this year, in three consecutive cuts. After maintaining the rate unchanged during the August review, the repo rate currently stands at 5.50%.

The expected reduction comes at a time when Consumer Price Index (CPI)-based inflation has been showing a downward trend, reinforcing hopes of a sustained moderation in price pressures.

Hindusthan Samachar / Jun Sarkar