The Reserve Bank of India (RBI), on August 5, 2026, announced the outcome of the 62nd meeting of the Monetary Policy Committee (MPC) held during August 3–5, 2026. The MPC unanimously decided to keep the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25% and retained the neutral monetary policy stance. Consequently, the Standing Deposit Facility (SDF) rate remains at 5.00%, while the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.50%.
The MPC observed that the Indian economy continues to demonstrate resilience despite global uncertainties, with real GDP growth for 2026-27 projected at 6.7%. However, it noted that risks persist from El Niño-related weather conditions, geopolitical tensions, volatile energy prices, and global trade uncertainties. On inflation, the MPC projected Consumer Price Index (CPI) inflation at 5.0% for 2026-27, expecting inflation to rise in the near term due to food and fuel price pressures before moderating later in the financial year. The Committee highlighted that core inflation remains moderate, indicating that underlying demand-driven inflationary pressures continue to be contained.
The MPC concluded that, although headline inflation is expected to increase, the current inflationary pressures are largely supply-side in nature and have not become broad-based. Considering the evolving growth-inflation dynamics and prevailing uncertainties, the Committee decided to maintain the policy rate and neutral stance, while reaffirming its commitment to keeping inflation aligned with the target. The minutes of the MPC meeting will be published on August 19, 2026, and the next MPC meeting is scheduled for October 5–7, 2026.
[Press Release No. 2026-2027/809]
