RBI Keeps Repo Rate Unchanged at 5.25% Amid Global Uncertainty

The Reserve Bank of India's Monetary Policy Committee voted unanimously to maintain the policy repo rate at 5.25% on August 5, 2026, while retaining a neutral stance to manage evolving macroeconomic conditions.

Real GDP growth for 2026-27 is projected at 6.7%, with CPI inflation expected to reach 5.0% for the fiscal year, driven primarily by supply-side pressures in food and fuel sectors.

Governor Sanjay Malhotra noted that while core inflation remains moderate at 3.9%, the outlook is clouded by risks from El Niño, global trade policy, and potential volatility in energy prices.