The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25 percent in its latest Monetary Policy Committee (MPC) meeting. The decision was announced by RBI Governor Sanjay Malhotra on June 5, 2026.
Global Economic Outlook Remains Uncertain
Governor Malhotra stated that the global economic outlook continues to be clouded by the ongoing geopolitical impasse in West Asia. He emphasized that the MPC remains vigilant and ready to act if necessary, but for now, maintaining the status quo is prudent.
Key Highlights of the MPC Decision
- The repo rate has been retained at 5.25 percent.
- The reverse repo rate remains at 5.00 percent.
- The MPC voted unanimously to keep rates unchanged.
- The central bank maintained its accommodative stance.
The RBI also revised its GDP growth forecast for the current fiscal year to 7.2 percent, down from the previous estimate of 7.5 percent, citing global headwinds. Inflation projections were kept unchanged at 4.5 percent for the year.
Impact on Borrowers and Economy
The decision to hold rates steady comes as a relief for home loan and auto loan borrowers, as EMIs will not increase. However, experts suggest that the RBI is closely monitoring inflation and global developments before making any future moves.
The RBI's next MPC meeting is scheduled for August 2026.
