The Reserve Bank of India (RBI) on Wednesday, August 5, kept the benchmark repo rate unchanged at 5.25%, while retaining its neutral policy stance as policymakers weighed persistent geopolitical tensions in West Asia, elevated energy prices and continued uncertainty in the global economic environment.
The decision was announced after the three-day meeting of the third bi-monthly Monetary Policy Committee (MPC) for FY27, chaired by RBI Governor Sanjay Malhotra, which was held from August 3 to August 5.
RBI MPC Meeting August 2026: Repo Rate Unchanged at 5.25% for Fourth Straight Policy
With the latest decision, the RBI has now left the benchmark lending rate unchanged for the fourth consecutive monetary policy review, underscoring its cautious approach amid global uncertainties. The last revision to the repo rate came on December 5, 2025, when the central bank cut it by 25 basis points from 5.50% to 5.25%. Since then, the MPC has maintained the policy rate at the same level in every subsequent review.
RBI Increases FY27 GDP Growth Estimate to 6.7%; Q1 Outlook Raised to 7%
Alongside the policy decision, the central bank raised its FY27 GDP growth forecast to 6.7% from the earlier projection of 6.6%, reflecting confidence that resilient domestic demand will continue to support economic activity despite an increasingly uncertain global environment.
RBI Cuts FY27 Core Inflation Projection from 4.7% to 4.3%
The RBI also revised its Q1 FY27 growth estimate to 7% from 6.6% and Q2 FY27 to 6.4% from 6.3%, while retaining its Q3 and Q4 growth projections at 6.5% and 6.8%, respectively.
In a positive revision, the RBI has cut its FY27 core inflation forecast by 40 basis points to 4.3%, from the earlier estimate of 4.7%.
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