RBI holds repo rate at 5.25%, lifts FY27 growth forecast to 6.7%
The Monetary Policy Committee voted unanimously on 5 August 2026 to keep the repo rate unchanged and retain its neutral stance, while raising the GDP growth projection and trimming the inflation forecast for 2026-27.
The Reserve Bank of India’s Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 5.25% following its 62nd meeting, held 3-5 August 2026 under Governor Sanjay Malhotra. The committee also retained its “neutral” policy stance.
Key rates (unchanged)
| Rate | Level |
|---|---|
| Policy repo rate | 5.25% |
| Standing deposit facility (SDF) | 5.00% |
| Marginal standing facility (MSF) | 5.50% |
| Bank Rate | 5.50% |
Growth and inflation projections for 2026-27
| Metric | 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% |
The full-year GDP growth projection was raised from 6.6% at the previous (June 2026) meeting, while the CPI inflation projection was lowered from 5.1%. Core inflation for 2026-27 is projected at 4.3%.
What the MPC said
The committee said the domestic economy remains resilient, supported by private consumption, investment activity and services exports, even as global headwinds persist. It flagged that headline inflation is expected to rise in the near term and peak in the third quarter of 2026-27 before easing.
Next meeting
The MPC’s next meeting is scheduled for 5-7 October 2026.
Basis of these figures
Rate levels and projections are as stated in the RBI’s own Monetary Policy Statement press release for the 3-5 August 2026 meeting. Read the RBI’s press release for the full statement.