RBI MPC Minutes Reaffirm 5.25% Repo Rate Hold

The Reserve Bank of India (RBI) has published the formal minutes of its Monetary Policy Committee (MPC) meeting, confirming a unanimous decision to keep the policy repo rate unchanged at 5.25% while upgrading the country’s real GDP growth projection for FY 2026–27 to 6.7%, according to the Reserve Bank of India.

The MPC, which conducted its bi-monthly deliberations from August 3 to August 5, 2026, maintained its ‘Neutral’ monetary policy stance. The standing deposit facility (SDF) rate remains aligned at 5.00%, and the marginal standing facility (MSF) rate and Bank Rate stand unchanged at 5.50%.

Economic Projections and Inflation Assessment

In its assessment of macroeconomic parameters, the committee noted that domestic economic activity continues to exhibit resilience, supported by sustained manufacturing momentum, agricultural stability, and robust capital expenditure. Consequently, the RBI revised its baseline GDP growth forecast for FY 2026–27 upward to 6.7%.

On the price stability front, the MPC observed that headline retail inflation continues to align closer to the 4.0% medium-term target, assisted by moderating core inflation and improved supply-chain normalization. The committee highlighted that maintaining a neutral stance provides necessary flexibility to monitor external financial volatility and weather-related food supply dynamics while keeping borrowing conditions supportive of productive investment.