06/08/2026
RBI MPC Meeting – 5 August 2026: Key Highlights
The RBI’s Monetary Policy Committee kept the repo rate unchanged at 5.25% and maintained a neutral policy stance. The central bank raised the FY27 GDP growth forecast to 6.7% and lowered the inflation forecast to 5.0%, indicating that broad inflationary pressures remain contained.
India’s domestic economy continues to show resilience, supported by strong consumption, investment activity, and infrastructure spending. Inflation is expected to rise temporarily in Q3 before easing thereafter.
Improved liquidity conditions since June have helped keep short-term rates within the policy corridor and contributed to a moderation in bond yields. RBI remains comfortable with the modest current account deficit, though it flagged risks from crude oil prices, weather disruptions, and global trade uncertainties.
The central bank reiterated that the rupee will remain market-determined while it will act to curb excessive volatility. FDI inflows remain strong, and FPI flows have improved, especially in debt markets.
Overall, RBI believes that India’s macroeconomic fundamentals remain strong despite external and domestic risks.
Source: RBI Monetary Policy Committee Meeting, 5 August 2026
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