RBI Keeps Repo Rate Unchanged at 5.25%, Raises FY27 Growth Forecast
The Reserve Bank of India's Monetary Policy Committee concluded its third bi-monthly meeting of FY2026 on 5 August 2026, unanimously voting to hold the policy repo rate at 5.25% while retaining a neutral stance.
- Standing Deposit Facility (SDF) held at 5.00%; Marginal Standing Facility (MSF) and Bank Rate held at 5.50%.
- RBI raised its FY27 GDP growth forecast to 6.7% and lowered the inflation outlook to 5.0%, with headline inflation expected to peak in the October-December quarter.
- Governor Sanjay Malhotra said the MPC wanted 'greater clarity' on the inflation outlook amid West Asia tensions, oil price swings and an erratic monsoon before acting on rates. Next MPC meeting: 5-7 October 2026.
Exam Context: Economy, RBI Monetary Policy Committee, Repo rate, Inflation targeting.