On 5 August 2026, the Reserve Bank of India (RBI) released the Monetary Policy Statement following the 62nd meeting of the Monetary Policy Committee (MPC) held from 3 to 5 August 2026 under the chairmanship of RBI Governor Mr. Sanjay Malhotra. The decision follows the Committee’s assessment of evolving domestic and global macroeconomic and financial conditions.
Key Takeaways:
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The MPC unanimously voted to keep the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25%.
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The Standing Deposit Facility (SDF) rate remains at 5.00%, while the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.50%.
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The MPC decided to continue with the neutral policy stance.
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The RBI observed that the Indian economy remains resilient despite global headwinds, supported by robust private consumption, continued investment activity and strong services exports. Real GDP growth for 2026-27 has been projected at 6.7%.
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Quarter-wise GDP growth projections for 2026-27 are:
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Q1: 7.0%
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Q2: 6.4%
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Q3: 6.5%
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Q4: 6.8%
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Real GDP growth for Q1 of 2027-28 has been projected at 7.3%.
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CPI inflation increased to 4.4% in June 2026 after remaining below the target for 16 consecutive months.
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The increase in inflation was mainly driven by food and fuel prices, while core inflation remained unchanged at 3.9% during May-June 2026.
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The RBI has projected CPI inflation at 5.0% for 2026-27.
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Quarter-wise inflation projections for 2026-27 are:
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Q2: 4.7%
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Q3: 5.9%
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Q4: 5.5%
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Inflation for Q1 of 2027-28 is projected at 5.3%.
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The MPC noted that, while inflation is projected to rise in the near term, the increase is largely attributable to food and fuel prices and has not yet become broad-based.
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Core inflation excluding precious metals continues to remain benign, while growth is expected to moderate in 2026-27.
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The MPC highlighted risks arising from global market volatility, geopolitical tensions, volatile oil prices, global trade policy uncertainty, south-west monsoon conditions and El Niño, warranting caution before any policy rate action.
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The Committee stated that it will remain vigilant and committed to aligning inflation with the target while responding appropriately to evolving macroeconomic conditions.
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The minutes of the MPC meeting will be published on 19 August 2026, and the next MPC meeting is scheduled from 5 October 2026 to 7 October 2026.
Also Read: RBI Monetary Policy April 2026: Repo Rate Unchanged Amid Global Uncertainty
[Monetary Policy Statement 2026-27, Dated 5-8-2026]