RBI MPC June 2026 LIVE: Repo Rate Held at 5.25%, FY27 Growth Cut to 6.6%,Inflation Raised to 5.1%

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%, with the Monetary Policy Committee (MPC) unanimously voting to maintain the status quo and retain its neutral policy stance.

Announcing the decision, RBI Governor Sanjay Malhotra acknowledged growing global uncertainties, including elevated crude oil prices, supply chain disruptions, geopolitical tensions, and the risk of a weak monsoon due to El-Nino.

RBI MPC June 2026 LIVE Updates

While retail inflation remains below the RBI's 4% target, the central bank warned that price pressures could intensify in the coming quarters.

The RBI has cut the repo rate by a cumulative 100 basis points since February 2025, the most aggressive easing in years. The central bank has also projected FY27 GDP growth at 6.9% and raising its retail inflation forecast to 4.6%. Since then, wholesale inflation has surged to a three-and-a-half-year high, global oil prices have remained volatile due to US- Iran tensions, and the rupee has experienced sharp fluctuations against the US dollar.

Crude oil has since pulled back, down 21.8% in May to around $91 in hopes of a US-Iran memorandum of understanding that could reopen the Strait of Hormuz. That easing in oil prices appears to have removed pressure for any emergency rate action.

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