Archive · 3 Aug 2026
RBI Likely Keeps Repo Rate at 5.25% Amid Uncertainty
The Reserve Bank of India (RBI) is meeting to decide if it should raise or keep its main interest rate.
Experts think the RBI will keep the rate the same because oil prices are high and the monsoon might be weak, which could raise food prices.
The RBI has also collected a lot of foreign money to strengthen its reserves.
Analysts say the RBI will stay cautious and wait for clearer signs before changing the rate.
The bank also announced new ways to attract foreign investors.
RBI's Monetary Policy Committee is expected to keep the repo rate unchanged at 5.25% during its June meeting.
The decision is influenced by global oil price volatility, weak monsoon forecasts, and Middle East geopolitical tensions.
RBI has attracted $40.81 billion in FCNR (B) deposits to bolster foreign exchange reserves.
Analysts Mandar Pitale and Santanu Sengupta predict a cautious stance, citing growth‑inflation risks and weather uncertainties.
The central bank also announced measures to boost foreign institutional investor flows.
- Who
- Reserve Bank of India Monetary Policy Committee
- What
- Decide whether to change the repo rate
- When
- June 2024 meeting
- Where
- India
- Why
- Global oil price volatility, weak monsoon forecast, Middle East geopolitical tensions
- Repo rate
- 5.25%
- Meeting date
- June 2024
- FCNR (B) deposits
- $40.81 billion
- Policy stance
- Pause
- Key concerns
- Oil prices, monsoon, Middle East tensions