New Delhi, Aug 5, 2026(Yes Punjab News)
The Reserve Bank of India (RBI) on Wednesday left the benchmark repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) maintaining its neutral policy stance as geopolitical tensions, trade uncertainties and volatile global markets continue to cloud the economic outlook.
The central bank also kept the Standing Deposit Facility (SDF) rate unchanged at 5 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate remain at 5.5 per cent.
Announcing the MPC’s decision, RBI Governor Sanjay Malhotra said the global environment continues to pose challenges, citing fresh US tariff measures, volatile crude oil prices and financial market fluctuations linked to the ongoing crisis in West Asia.
The decision was broadly in line with market expectations, with economists anticipating that the six-member MPC would maintain the status quo on interest rates while retaining its neutral stance.
The latest policy review comes against the backdrop of inflation edging higher in recent months, although it remains within the RBI’s prescribed tolerance band. The central bank continues to closely monitor crude oil prices, exchange rate movements and geopolitical developments, which remain key risks to inflation and growth.
Despite external headwinds, the domestic economy has shown resilience, supported by healthy economic activity, favourable monsoon conditions and sustained foreign capital inflows.
Governor Malhotra noted that while India’s economy remains resilient, early signs of stress have emerged in certain segments, and significant risks continue to surround both inflation and growth projections.
At its previous policy meeting in June, the MPC had also unanimously retained the repo rate at 5.25 per cent. During that review, the RBI revised its real GDP growth forecast for FY2026-27 to 6.6 per cent from the earlier estimate of 6.9 per cent, citing heightened global uncertainty, geopolitical tensions, supply chain disruptions and elevated energy prices.
The RBI’s latest decision signals a cautious approach as policymakers seek to balance inflation management with sustaining economic growth amid an uncertain global environment.
FOLLOW NOW
