Archive · 6 Aug 2026
RBI keeps repo rate steady at 5.25% amid inflation uncertainty
The Reserve Bank of India is like the country's money manager.
It helps decide how much it costs to borrow money.
In its August meeting, it decided to keep the cost of borrowing the same.
The main interest rate stays at 5.25 percent.
This rate is called the repo rate.
Prices of some foods and fuels have gone up recently.
That made things cost a little more than before.
But the RBI thinks prices will go down after a few months.
It also thinks the economy will grow well this year.
So it wants to keep things steady and not make sudden changes.
The RBI's Monetary Policy Committee voted unanimously in its August meeting to keep the repo rate unchanged at 5.25%.
The committee retained its neutral monetary policy stance.
CPI inflation rose to 4.38% in June from 3.93% in May, driven largely by food and fuel prices, while core inflation remains subdued at around 2.3-2.5%.
The RBI projects inflation to peak in the October-December quarter at 5.9%, easing to 5.5% in Q4 and 5.3% in Q1 of the next financial year.
The central bank marginally raised its growth forecast to 6.7%, citing robust private consumption and resilient investment.
- Who
- The Reserve Bank of India's Monetary Policy Committee (MPC)
- What
- Voted unanimously to keep the repo rate unchanged at 5.25% and maintain a neutral monetary policy stance
- When
- August meeting of the RBI's monetary policy committee
- Where
- India
- Why
- To manage inflation driven largely by food and fuel prices while supporting resilient growth, amid uncertainty over the monsoon, El Nino and volatile global oil prices
- Repo Rate
- 5.25% (unchanged)
- Policy Stance
- Neutral
- CPI Inflation (June)
- 4.38%
- CPI Inflation (May)
- 3.93%
- Core Inflation
- Around 2.3-2.5%
- CPI Projections
- 5.9% in Q3, 5.5% in Q4, 5.3% in Q1 of next financial year
- GDP Growth Forecast
- 6.7%
- India's Crude Oil Basket
- Around $85.19 per barrel