RBI Monetary Policy Committee keeps repo rate at 5.25% in unanimous vote
What happened
The Reserve Bank of India published the minutes of its 62nd Monetary Policy Committee meeting held from August 3 to 5, 2026. Chaired by Governor Sanjay Malhotra, the six-member panel voted unanimously to hold the policy repo rate at 5.25% while maintaining a neutral monetary stance. Consequently, the standing deposit facility rate remains at 5.00%, with both the marginal standing facility rate and Bank Rate held at 5.50%.
Why it matters
Holding interest rates steady provides borrowing predictability for businesses while the central bank balances firm domestic growth against external volatility. India's economic activity remains supported by robust private consumption, resilient investment across construction and capital goods, healthy bank credit expansion, and expanding services exports alongside a rebound in merchandise trade.
Bigger picture
India's domestic momentum contrasts with sharp global market volatility driven by sticky inflation, hawkish central bank stances, and valuation adjustments in AI-related equities. Resumed conflict in West Asia, volatile oil prices, and fragile public finances in major economies continue to pose downside risks to the global macroeconomic outlook.
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Monitor upcoming high-frequency domestic economic indicators for Q1 2026-27, alongside external developments including West Asia geopolitical risks, global central bank rate decisions, and fluctuations in international commodity prices.