5 Aug 2026 (Navroze Bureau) : The Reserve Bank of India (RBI) has kept the policy repo rate unchanged at 5.25%, maintaining its current monetary policy stance as the Monetary Policy Committee (MPC) assessed inflation trends, economic growth and global uncertainties.
The decision was announced after the latest MPC meeting and was largely in line with market expectations.
Repo Rate Remains Unchanged
The RBI decided to leave the benchmark lending rate unchanged, signalling a balanced approach as it seeks to support economic growth while keeping inflation under control.
The move means borrowing costs for banks are expected to remain broadly stable.
Focus on Inflation and Growth
The MPC noted that inflation continues to require close monitoring, while domestic economic activity has remained resilient.
The central bank said future policy decisions will continue to depend on incoming macroeconomic data and evolving global conditions.
Impact on Borrowers
With the repo rate unchanged, home loan, vehicle loan and business loan interest rates are unlikely to witness immediate changes, unless individual banks revise their lending rates independently.
Markets Watch RBI Outlook
Investors and economists will closely analyse the RBI’s commentary on inflation, liquidity, growth projections and future policy guidance for clues on the direction of interest rates in the coming months.