The RBI has kept the repo rate unchanged at 5.25% as it waits for clearer signs on inflation and growth. The move reflects concern over food and fuel-led price pressure, global uncertainty and West Asia tensions, even as India’s economy remains resilient and GDP growth is projected at 6.7% for 2026-27.
The Reserve Bank of India has kept key interest rates unchanged, even as inflation has moved above target and global uncertainty has stayed high. For you, that means the central bank is still waiting for clearer signs on prices and growth before making its next move.
The Monetary Policy Committee held the policy repo rate at 5.25%, while the standing deposit facility rate stayed at 5.00% and the marginal standing facility rate and bank rate remained at 5.50%. The committee also kept its neutral stance. That means the RBI is not signaling a shift either towards easier or tighter policy for now.
The decision comes against a difficult global backdrop. The statement points to the West Asia conflict, fresh US tariffs, volatile oil prices and ongoing trade uncertainty as major risks. Inflation has edged up, mainly because of food and fuel. The RBI said core inflation remains benign and has not become broad-based.
Growth, however, is still holding up. The central bank said India’s economy remains supported by domestic demand, manufacturing, services, exports and government spending on infrastructure. It has projected real GDP growth at 6.7% for 2026-27.
Inflation is expected to stay elevated in the near term. The RBI has projected CPI inflation at 5.0% for 2026-27, with a peak in the third quarter before easing later. It has also flagged risks from the monsoon, El Niño, geopolitics and global trade policy.
Source: Governor’s Statement: 5-Aug-2026
