Archive · 4 Aug 2026
RBI to Decide on 5.25% Repo Rate Amid Inflation Concerns
The Reserve Bank of India (RBI) is holding a three‑day meeting to decide whether to change its main interest rate, called the repo rate.
The rate is currently 5.25%.
Experts think the RBI will keep it the same because prices are still rising faster than the target.
The RBI also updated its growth forecast for next year to 6.6% and expects the first quarter to grow more than 7%.
Investors are watching the RBI’s comments closely to see what the future might hold for interest rates and the economy.
RBI’s three‑day MPC meeting starts Monday, with the repo rate decision due on August 5.
Analysts expect the six‑member committee to keep the repo rate unchanged at 5.25%.
Inflation is projected to stay above 5% for the next two quarters, prompting a cautious stance.
RBI revised its FY27 GDP growth forecast to 6.6% and expects Q1 FY27 GDP to exceed 7%.
Markets are watching RBI’s commentary on inflation risks, growth prospects, and global developments.
- Who
- Reserve Bank of India and its Monetary Policy Committee, led by Governor Sanjay Malhotra
- What
- Three‑day meeting to decide on the policy repo rate
- When
- Begins Monday, decision announced on August 5
- Where
- Mumbai, India
- Why
- To assess inflation, economic growth, and future rate trajectory amid global uncertainty
- Repo rate
- 5.25%
- Meeting start date
- Monday
- Decision date
- August 5
- Inflation forecast
- Above 5% for next two quarters
- FY27 GDP forecast
- 6.6%
- Q1 FY27 GDP forecast
- Exceeds 7%
