New Delhi: The Reserve Bank of India (RBI) on 5 August 2026 kept the repo rate unchanged at 5.25%, as widely expected by economists and financial markets. The Monetary Policy Committee (MPC) decided to maintain its current policy stance amid global uncertainties, volatile crude oil prices and evolving inflation trends.
RBI Governor Sanjay Malhotra said inflation remains under control despite recent increases in global energy prices. The central bank also revised its inflation outlook slightly lower, expressing confidence that price stability would be maintained while supporting economic growth.
Economists believe the decision will provide stability to borrowers and businesses while allowing the RBI additional time to assess domestic and global economic conditions. Future policy decisions are expected to depend on inflation, monsoon performance and international developments.
The RBI reaffirmed its commitment to maintaining macroeconomic stability and indicated that it stands ready to take appropriate action if inflationary pressures intensify in the coming months.
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