RBI Keeps Repo Rate Unchanged at 5.25% for Fourth Straight Meeting
RBI Keeps Repo Rate Unchanged at 5.25% for Fourth Straight Meeting
Summary
The Reserve Bank of India's Monetary Policy Committee (MPC), under Governor Sanjay Malhotra, kept the repo rate unchanged at 5.25% for the fourth consecutive time, maintaining a neutral stance, while raising the FY2026-27 GDP growth forecast to 6.7% and lowering the inflation forecast to 4.3%.
Background
The RBI's Monetary Policy Committee reviews the repo rate periodically to balance growth and inflation objectives; holding rates steady reflects a wait-and-watch approach amid stable price trends.
TNPSC Relevance
Monetary policy decisions, repo rate changes, and MPC composition are important topics under the Banking and Finance / Indian Economy sections of TNPSC exams.
Constitutional / Economic / Scientific Relevance
Economically, the repo rate is the key policy tool through which the RBI manages inflation and liquidity in the economy; a neutral stance signals balanced risks to growth and inflation.
Key Highlights
- The MPC kept the repo rate unchanged at 5.25% for the fourth consecutive meeting.
- The RBI maintained a neutral policy stance.
- The FY2026-27 GDP growth forecast was raised to 6.7% from 6.6%.
- The inflation forecast was lowered to 4.3% from 4.7%.
- Retail inflation (CPI) stood at 4.38% in June 2026, the highest in the current series.
Important Facts
| Fact | Detail |
|---|---|
| Repo rate | 5.25% (unchanged, 4th time) |
| RBI Governor | Sanjay Malhotra |
| FY27 GDP growth forecast | 6.7% (revised up) |
| Inflation forecast | 4.3% (revised down) |
| June 2026 CPI | 4.38% |
Timeline
| Date | Event |
|---|---|
| 2026-08-06 | RBI MPC holds repo rate at 5.25% for fourth straight time |
Static GK Links
- Composition of the Monetary Policy Committee (6 members)
- Repo rate vs Reverse repo rate vs CRR/SLR
- Inflation targeting framework in India (4% +/- 2%)
Exam Notes & Memorization Points
Repo rate: 5.25%, unchanged for 4th straight meeting.
FY27 growth forecast: 6.7%; inflation forecast: 4.3%.
RBI Governor: Sanjay Malhotra.
Practice MCQs
Q1. At what level did the RBI's MPC keep the repo rate unchanged for the fourth consecutive time?
- (A) 4.75%
- (B) 5.25%
- (C) 5.75%
- (D) 6.00%
Answer: B — The repo rate was held at 5.25%.
Q2. Who is the Governor of the Reserve Bank of India as per this policy announcement?
- (A) Shaktikanta Das
- (B) Sanjay Malhotra
- (C) Urjit Patel
- (D) Raghuram Rajan
Answer: B — Sanjay Malhotra is the RBI Governor.
Q3. To what level did the RBI revise the FY2026-27 GDP growth forecast?
- (A) 6.5%
- (B) 6.6%
- (C) 6.7%
- (D) 7.0%
Answer: C — The growth forecast was revised up to 6.7% from 6.6%.
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