RBI keeps repo rate unchanged at 5.25%, stance neutral; next MPC meeting on 5–7 October 2026
The Monetary Policy Committee voted unanimously to hold the repo rate. GDP growth for 2026-27 is projected at 6.7% and CPI inflation at 5.0%.
Key facts
- Who it affects
- Borrowers on floating rates; businesses planning credit
- Section
- FEMA & RBI
- Published
- 5 August 2026
In 30 seconds
- Repo rate 5.25%; SDF 5.00%; MSF and Bank Rate 5.50% — all unchanged.
- Stance stays neutral; the vote on the rate was unanimous.
- Real GDP growth for 2026-27 projected at 6.7%; CPI inflation at 5.0%, peaking in Q3 at 5.9%.
- Next MPC meeting: 5 to 7 October 2026.
हिंदी में सार
RBI की मौद्रिक नीति समिति ने 5 अगस्त 2026 को रेपो रेट 5.25% पर बरकरार रखा और रुख़ neutral रखा। 2026-27 के लिए GDP वृद्धि 6.7% और महँगाई 5.0% रहने का अनुमान है। अगली बैठक 5–7 अक्टूबर 2026 को है।
The decision
At its 62nd meeting, held from 3 to 5 August 2026, the Monetary Policy Committee voted unanimously to keep the policy repo rate at 5.25%. The standing deposit facility rate remains 5.00%, and the marginal standing facility rate and the Bank Rate remain 5.50%. The neutral stance continues.
The projections
| 2026-27 | Q1 | Q2 | Q3 | Q4 | Full year |
|---|---|---|---|---|---|
| Real GDP growth | 7.0% | 6.4% | 6.5% | 6.8% | 6.7% |
| CPI inflation | — | 4.7% | 5.9% | 5.5% | 5.0% |
For Q1 of 2027-28, growth is projected at 7.3% and inflation at 5.3%.
The reasoning
CPI inflation rose to 4.4% in June 2026 after staying below the target for 16 consecutive months, mainly on food and fuel. Core inflation was unchanged at 3.9%. The MPC said headline inflation is expected to rise further and peak in Q3, but the rise is supply-side and not getting broad-based; it wants greater clarity on the path and composition of inflation before any policy action.
For borrowers
With the repo rate unchanged, the resolution itself brings no change to repo-linked loan rates. The next MPC meeting is scheduled for 5 to 7 October 2026.
Published 5 August 2026. Updated 8 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.