The Reserve Bank of India’s Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 5.25 per cent at its 61st meeting, held from June 3 to 5, 2026. The committee also left the standing deposit facility (SDF) rate at 5.00 per cent and the marginal standing facility (MSF) rate and Bank Rate at 5.50 per cent, while retaining a neutral stance.
The meeting was chaired by Shri Sanjay Malhotra, Governor, Reserve Bank of India, and attended by all MPC members: Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya. The committee voted unanimously to hold rates steady after reviewing macroeconomic and financial developments and the outlook.
In its assessment, the MPC said risks from the prolonged West Asia conflict, higher energy prices and supply chain disruptions had increased concerns for both growth and inflation. It said domestic economic activity had remained largely steady, with private consumption resilient, fixed investment maintaining momentum, merchandise exports showing strong growth in April 2026 and services exports continuing to be robust.
The RBI projected real GDP growth for 2026-27 at 6.6 per cent, with quarterly estimates of 6.6 per cent in Q1, 6.3 per cent in Q2, 6.5 per cent in Q3 and 6.8 per cent in Q4. It said prolonged global supply chain disruptions, heightened volatility in global financial markets and weather-related shocks posed downside risks to growth.
On inflation, headline CPI inflation rose to 3.4 per cent in March and 3.5 per cent in April 2026, mainly due to higher food inflation. The MPC said retail fuel prices have been raised cumulatively by 7.4 per cent for petrol and 8.4 per cent for diesel since May, implying a direct impact of about 36 basis points on headline inflation, with further second-round effects possible.
The committee projected CPI inflation at 5.1 per cent for 2026-27, with quarterly estimates of 4.2 per cent in Q1, 5.1 per cent in Q2, 5.9 per cent in Q3 and 5.4 per cent in Q4. Core inflation for 2026-27 was projected at 4.7 per cent.
The MPC said the next meeting is scheduled for August 3 to 5, 2026. The minutes of the June meeting will be published on June 19, 2026.
Source: www.rbi.org.in.
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