RBI keeps repo rate unchanged at 5.25%, cuts inflation forecast

RBI's Monetary Policy Committee has maintained the repo rate at 5.25 per cent and revised India's inflation and GDP forecasts for FY27

PGurus Newsdesk

August 5, 2026

The Reserve Bank of India has kept the repo rate unchanged at 5.25%, retained its neutral policy stance, lowered the FY27 inflation forecast to 5%, and raised the country's GDP growth projection to 6.7%

Governor Sanjay Malhotra cited rising crude oil prices and global uncertainty while announcing the latest monetary policy

The Reserve Bank of India (RBI) on Tuesday kept the repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) unanimously deciding to retain its neutral policy stance.

The RBI also left the Standing Deposit Facility (SDF) rate unchanged at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.5 per cent.

Announcing the policy, RBI Governor Sanjay Malhotra cited elevated crude oil prices amid the ongoing Iran conflict as a key concern. The central bank, however, reduced its FY27 retail inflation forecast to 5 per cent from 5.1 per cent and raised the GDP growth projection to 6.7 per cent from 6.6 per cent, reflecting confidence in India’s economic resilience.

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