RBI MPC August Meeting Live Updates: Repo Rate Unchanged at 5.25%

RBI Governor Sanjay Malhotra announced on Wednesday that the Monetary Policy Committee has unanimously decided to keep the repo rate unchanged at 5.25% while retaining its neutral policy stance.

This is the fourth straight pause on rates by the central bank. The SDF rate stays at 5%, and the MSF and Bank Rate remain at 5.5%.

Malhotra said "the decision has been taken after a careful assessment of domestic macroeconomic conditions and the global outlook, with the ongoing conflict in West Asia continuing to disrupt trade routes & unsettle financial markets"

The MPC is chaired by RBI Governor Sanjay Malhotra along with five other members, including Deputy Governor Dr Poonam Gupta, RBI Executive Director Indranil Bhattacharyya, and three external members appointed by the Central Government: Prof. Ram Singh, economist Saugata Bhattacharya, and Dr Nagesh Kumar.

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Aug 05, 2026, 12:52 pm IST

RBI MPC Announcement Reaction By Ritesh Jain, Co-founder, FlexiLoans

“The RBI's decision to maintain the policy rate, while raising the growth outlook and lowering its inflation forecast, sends a strong signal of confidence in India's economic trajectory. For MSMEs, policy stability, coupled with an improving macroeconomic environment, provides greater visibility to plan investments, expand operations and pursue growth opportunities. In our experience, business confidence is often the biggest catalyst for credit demand. As demand conditions improve and inflation remains contained, we expect more entrepreneurs to invest in inventory, capacity expansion and working capital.”

Aug 05, 2026, 12:52 pm IST

RBI MPC Announcement Reaction By Mahesh Shukla, Founder & CEO at PayMe

The RBI's decision to maintain policy continuity reflects a balanced approach towards preserving macroeconomic stability while ensuring that liquidity conditions remain supportive of economic activity. At a time when global uncertainties and inflationary pressures continue to influence financial markets, a stable liquidity environment is essential for sustaining healthy credit growth across sectors.”

Aug 05, 2026, 12:44 pm IST

RBI MPC Announcement Reaction By Sadaf Sayeed, CEO of Muthoot Microfin

“The RBI’s decision to maintain the status quo on policy rates is a balanced, pragmatic move and is largely in line with industry expectations. The central bank’s decision to maintain its neutral stance and lift the GDP growth outlook to 6.7% has bolstered confidence in the economy’s resilience. Stable interest rates provide greater confidence to borrowers and lenders, and that enables financial institutions like ours to continue expanding access to responsible credit, especially in underserved markets. The policy gets the right balance between supporting growth and preserving macroeconomic stability."

Aug 05, 2026, 11:37 am IST

RBI MPC Announcement Reaction By Yashank Wason, Managing Director, Royal Green Realty

“RBI MPC’s decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline.

Aug 05, 2026, 11:37 am IST

RBI MPC Announcement Reaction By Rajat Bokolia, CEO, Newstone

“The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector. It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets.”

Aug 05, 2026, 11:37 am IST

RBI MPC Announcement Reaction By Abhay Mishra, CEO & President, Jindal Realty

“The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution. Going ahead, policy support and improved liquidity will be key to unlocking the sector’s full potential and ensuring steady, inclusive growth across markets.”

Aug 05, 2026, 10:53 am IST

RBI Moves to Standardise Lending Rates

“in light of the experience gained and the developments since 2008 when the credit monitoring arrangement for rural cooperative banks was last revised. We are issuing draft directions after undertaking a comprehensive review of this arrangement. Here is one measure for interest rate on advances in order to enhance transparency in lending rates and further strengthen consumer protection. It is proposed to harmonize and standardize the regulatory framework on interest rates on advances for all regulated entities.” said Malhotra

Aug 05, 2026, 10:51 am IST

RBI Proposes Fresh Rules for Urban Cooperative Banks

“I have two measures to further strengthen the cooperative sector. One on the basis of the feedback received on the discussion paper on licensing of UCBS which we had done some time ago, we are now issuing draft guidelines for resuming licensing of the urban cooperative banks.” Malhotra said.

Aug 05, 2026, 10:41 am IST

Trade Deficit Widedens In Q1

“In Q1, the merchandise trade deficit widened to about $86 billion from around $69 billion in the same quarter last year, mainly driven by imports of crude oil, electronic goods and gold” said Malhotra .

Aug 05, 2026, 10:29 am IST

Current Account Surplus at $2.8 Billion

RBI Governor Sanjay Malhotra said, "India's current account recorded a surplus of $2.8 billion during April-May this year, primarily driven by services trade and strong remittance receipts.

Aug 05, 2026, 10:24 am IST

Liquidity Conditions to Remain Comfortable

Governor Malhotra Says, “The Liquidity Adjustment Facility (LAF) remained in an average daily surplus of around Rs. 1 lakh crore since the last MPC meeting. Going forward, the RBI expects liquidity conditions to remain comfortable, supported by the seasonal return of currency to the banking system during the monsoon, a drawdown in government cash balances, and the central bank's measures aimed at ensuring adequate liquidity in the financial system over the near term. “

Aug 05, 2026, 10:18 am IST

RBI Announced Quarterly CPI inflation

Guv Malhotara said, “CPI inflation for this year is now projected to be 5% 10 basis lower that out earlier projection with Q1 at 5.3%, Q2 at 4.7%, Q3 at 5.9%, and Q4 at 5.5&” For FY27 the core inflation is projected at 4.3% for this financial year.

Aug 05, 2026, 10:15 am IST

GDP Forecast

RBI announces FY27 GDP growth forecast at 6.6%

Aug 05, 2026, 10:12 am IST

RBI MPC Cites Inflation Risks

Governor Malhotra said “The MPC observed that while economic growth remains resilient, it is expected to moderate during the current financial year. However, the outlook remains uncertain due to factors such as the progress of the southwest monsoon, potential El Niño conditions, and ongoing geopolitical tensions. The committee emphasized the need for greater clarity on the inflation path , its underlying composition, and evolving risks before taking any further policy action.”

Aug 05, 2026, 10:09 am IST

Headline Inflation Above Target

Governor Malhotra Said, “The MPC noted that headline inflation has edged above the target, broadly in line with expectations. However, the realised inflation in the first quarter (Q1) remained marginally lower than projected, reflecting limited pass-through of cost pressures. Core inflation, excluding precious metals, has remained benign, as anticipated. Looking ahead, headline inflation is expected to rise in the near term and is projected to peak in the third quarter (Q3) of the current financial year, primarily due to food and fuel prices, before moderating thereafter. “

Aug 05, 2026, 10:05 am IST

SDF, MSF & Bank Rate

Guv Malhotra announced no changes in the SDF rate at 5%, the MSF rate at 5.5% and the Bank Rate at 5.5 %

Aug 05, 2026, 10:03 am IST

MPC vote count

6 out of 6 members voted in favour of the decision.

Aug 05, 2026, 10:02 am IST

Repo Rate Unchanged

RBI keeps the repo rate unchanged at 5.25%. Stance retained to neutral

Aug 05, 2026, 10:00 am IST

RBI Governor Sanjay Malhotra begins reading out the MPC resolution.

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Aug 05, 2026, 9:22 am IST

RBI MPC Expectation: Rate Stability in Focus

The upcoming monetary policy announcement will be closely watched by both homebuyers and the real estate sector. While the RBI continues to balance inflation and growth, the housing market has remained resilient, supported by strong end-user demand and positive buyer sentiment. A stable interest rate environment also provides greater certainty for developers and investors.” said Yateesh Wahaal, Director, M3M

Aug 05, 2026, 9:20 am IST

RBI MPC Expectation: Stable Repo Rate to Boost Homebuyer Confidence

“If the Reserve Bank of India keeps the repo rate unchanged at 5.25 per cent, the policy would reinforce stability and confidence in the residential real estate market. A predictable interest rate environment allows homebuyers to plan long-term financial commitments with greater certainty, sustaining demand across mid-income, premium and luxury segments over the next 6–12 months. While a status quo is positive, a continued accommodative policy stance and adequate liquidity would further strengthen housing affordability and improve access to home finance.” said Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited

Aug 05, 2026, 8:01 am IST

RBI MPC Expectation: Bond Market Signals No Rate Change

“The upcoming monetary policy review is likely to maintain the status quo, with the RBI keeping the repo rate unchanged. The central bank is expected to remain cautious as it assesses the impact of evolving geopolitical developments, crude oil prices and currency movements on inflation and economic growth. The stability in India’s 10-year government bond yield at around 6.7% also indicates that bond traders are not pricing in an immediate change in interest rates.” said Vineet Agrawal, co-founder of Jiraaf- Sebi-registered Online bond platform (OBPP).

Aug 05, 2026, 7:58 am IST

RBI MPC Expectation: Repo Rate Hold Likely

“We expect the MPC to maintain the policy rate at its current level, balancing growth with macroeconomic stability amid an evolving global environment. While another repo rate cut would further improve housing affordability and support buyer sentiment, particularly in the mid-income and affordable segments, preserving policy stability remains equally important. Residential demand today is increasingly supported by healthy employment, rising household incomes, urbanisation and improving consumer confidence, making the market less reliant on interest rate movements alone.” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India

Aug 05, 2026, 7:02 am IST

Stock Market Set for a Weak Start

The Equity market today is expected to open weak today ahead of the RBI's policy announcement. GIFT Nifty was trading at 24,723.5, down 31 points as of 6:48 AM, hinting at a muted-to-negative start on Dalal Street. After a subdued session on Tuesday, where the Sensex fell 210.08 points to close at 78,428.95, and the Nifty 50 declined 159.40 points to settle at 24,614.90 snapping a four-day winning streak

Aug 05, 2026, 6:44 am IST

RBI Current Policy Rates

Repo Rate: 5.25% Standing Deposit Facility (SDF) Rate: 5.00% Marginal Standing Facility (MSF) Rate: 5.50% Bank Rate: 5.50% Cash Reserve Ratio(CRR): 3%

Aug 05, 2026, 6:41 am IST

Recap of The Last MPC Meeting

At its previous review on June 5 this year, the RBI's MPC unanimously voted to keep the repo rate unchanged at 5.25%, which was its third consecutive pause, while retaining a neutral policy stance. The central bank simultaneously cut its FY27 GDP growth forecast to 6.6% from 6.9%, and raised its CPI inflation projection to 5.1% from 4.6%, the reason being the rising crude oil prices, caused due to disruption in trade routes during the peak of the West Asia conflict.

Aug 05, 2026, 6:27 am IST

Good Morning Readers!

Welcome to our live coverage of the RBI MPC August 2026 meeting. Governor Sanjay Malhotra is going to announce the Monetary Policy Committee's decision at 10 am, followed by a press conference at 12 pm. Stay with us for real-time updates on the repo rate, inflation outlook, GDP growth projections and market reaction.