At its June 2026 monetary policy committee (MPC)meeting ,the Reserve Bnak Of India (RBI) unanimously decided to keep the repo rate at 5.25%. A balanced approach to inflation and economic expansion is reflected in the central bank's continued neutral policy stance.
Despite worldwide uncertaintly , the Indian economy is resilient,according to RBI Governor Sanjay malhotra . In addition to projecting consumer price inflation (CPI) at 5.1% for the fiscal year,the central bank updated its GDP growth prediction for FY2026-2027 to 6.6% .
The RBI emphasized that although inflation is still under control,riska from weather -related variables,commodity prices ,and geopolitical tensions still need to be closely watched.
Financial markets had a modest response because the policy decision was mostly in line with market ecpectations .According to analysts,the RBI will continue to take a data driven approach,basing future policy choices in the strength of domestic growth mosoon performance,inflation trends,and worls events.
