RBI holds repo rate at 5.25%, keeps neutral stance as inflation outlook stays murky

Money & Policy/Reserve Bank of India/
RBI holds repo rate at 5.25%, keeps neutral stance as inflation outlook stays murky
Illustration

India's Monetary Policy Committee voted unanimously to leave the repo rate at 5.25% and stay neutral, saying it wants clearer signals before moving. Governor Sanjay Malhotra attributed above-target headline inflation mainly to food and fuel, with little sign of broader price pressure. The RBI now projects 5.0% CPI inflation for 2026-27 and lifted its growth forecast to 6.7%. Next review is in October.

3 sources

  1. 01Reserve Bank of India — Governor's Statement: August 5, 2026rbi.org.in
  2. 02Forbes India — RBI MPC Meeting Highlights: Repo Rate Unchanged at 5.25%, Retains Neutral Stanceforbesindia.com
  3. 03India TV News — RBI keeps repo rate unchanged at 5.25%, maintains neutral stanceindiatvnews.com