RBI MPC Holds Repo Rate at 5.25%, Lowers Growth Forecast to 6.6%, Increases Inflation Projection by 50 Bps to 5.1% for FY27
- On Friday, June 5, 2026, the Reserve Bank of India's Monetary Policy Committee unanimously maintained the policy repo rate at 5.25% with a neutral stance, balancing growth and inflation amid dynamic global conditions.
- RBI Governor Sanjay Malhotra lowered FY27 GDP growth projections to 6.6% from 6.9% and raised CPI inflation forecasts to around 5.1%, citing surging energy prices and geopolitical tensions in the Middle East.
- International crude oil prices have averaged around $110 per barrel, pressuring the rupee, which weakened by over 6% this year; the government announced tax relief for FIIs and FPIs to boost foreign liquidity.
- Tribeca Developers Group CEO Rajat Khandelwal said the rate hold provides homebuyers stability in premium markets like MMR, NCR, and Pune, helping buyers plan better despite no immediate EMI relief.
- Policymakers warned that inflationary pressures remain tilted to the upside, with risks from potential weather-related disruptions like El Nino and persisting supply-chain shocks requiring continued vigilance.
39 Articles
39 Articles
RBI keeps repo rate unchanged at 5.25%
The Reserve Bank of India’s Monetary Policy Committee on Friday kept the repo rate unchanged at 5.25%.The repo rate is the interest rate at which the central bank lends money to commercial banks. The Monetary Policy Committee reviews the rate every two months.The committee had cut the repo rate by 25 basis points from 5.50% in December and kept it unchanged in February and April.A basis point is one-hundredth of a percentage point. Basis points …
In a major relief to the real estate sector, all six members of the Monetary Policy Committee (MPC) unanimously decided to keep the repo rate at 5.25%. The RBI also maintained its neutral stance, meaning that whether the central bank will raise or lower interest rates in the future will depend entirely on the country's economic data and changing global conditions.
The inflation rate, a key focus of the monetary authority, stood at 3.48% in April, below the RBI's target of 4%.
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