Mumbai, August 5, 2026 — The Reserve Bank of India (RBI) on Wednesday kept the policy repo rate unchanged at 5.25%. The Monetary Policy Committee (MPC) voted unanimously to maintain the current rate and retain its neutral policy stance.
The decision comes amid global uncertainties and inflation risks. The central bank said resilient domestic demand continues to support growth despite trade disruptions linked to the West Asia conflict.
Key policy rates unchanged
The six-member MPC, chaired by RBI Governor Sanjay Malhotra, also kept other key rates steady. The Standing Deposit Facility (SDF) rate remains at 5.00%. The Marginal Standing Facility (MSF) rate and the Bank Rate stay at 5.50%.
This marks the fourth consecutive bi-monthly policy review in FY27 where the RBI has held rates steady. The central bank last cut the repo rate by 25 basis points in December 2025, bringing it down from 5.50% to 5.25%.
Neutral stance retained
The MPC maintained its neutral stance. This means the central bank has not committed to either raising or cutting rates. Future policy decisions will remain data-dependent. They will depend on the inflation and growth outlook.
RBI Governor Sanjay Malhotra said the committee assessed heightened global uncertainties and inflation risks. He noted that external headwinds have intensified. However, the successful completion of trade deals augurs well for the economic outlook.
Growth and inflation projections
The central bank maintained its FY27 GDP growth projection at 6.7%. It projected CPI inflation at 5% for the current financial year. The MPC highlighted food and fuel-related supply pressures. It also flagged risks from the prolonged West Asia conflict and uncertainties around the south-west monsoon.
What it means for you
The unchanged repo rate means borrowing costs are likely to remain stable in the near term. Home loan, car loan and personal loan EMIs may not see immediate changes. Fixed deposit rates may also stay range-bound as banks align their lending and deposit rates with the RBI’s policy stance.
