RBI MPC Meeting June 2026: Key Announcements, Inflation Outlook, Growth Forecast, And Capital Flow Measures

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) today kept the benchmark repo rate unchanged at 5.25 per cent at the conclusion of its three-day meeting held from June 3 to June 5. RBI Governor Sanjay Malhotra has announced that the Standing Deposit Facility (SDF) rate would remain at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate would continue at 5.5 per cent.

Alongside the policy decision, RBI has announced a set of measures aimed at attracting foreign capital, supporting external financing and strengthening resilience against global economic uncertainties.

MPC Retains Repo Rate And Neutral Stance

The six-member committee unanimously voted to keep the policy repo rate unchanged at 5.25 per cent. Malhotra said that the decision followed an assessment of evolving macroeconomic and financial conditions.

He stated that the global situation has deteriorated since the April policy meeting due to the continuing conflict in West Asia, elevated energy prices and disruptions to global supply chains. According to the governor, these developments have increased uncertainty around both inflation and growth.

The MPC has noted that inflation risks have risen and growth prospects have become more challenging. However, it decided to wait for more clarity on the duration and impact of these global developments before considering any policy action. The committee has also retained the neutral stance, indicating that future decisions will remain data-dependent.

RBI Revises Inflation Assessment

The central bank has projected consumer price inflation at 5.1 per cent for 2026-27. Inflation is expected at 4.2 per cent in the first quarter, 5.1 per cent in the second quarter, 5.9 per cent in the third quarter, and 5.4 per cent in the fourth quarter.

Malhotra said that consumer price inflation has remained below RBI's target despite recent global shocks because the pass-through to domestic prices has so far been limited. However, he added that rising crude oil prices and higher costs of industrial inputs could place upward pressure on prices in the coming months.

Growth Forecast Set At 6.6 Per Cent

RBI has projected real Gross Domestic Product (GDP) growth at 6.6 per cent for 2026-27. Quarterly projections place growth at 6.6 per cent in the first quarter, 6.3 per cent in the second quarter, 6.5 per cent in the third quarter, and 6.8 per cent in the fourth quarter.

Malhotra has stated that the domestic economy has remained resilient despite external challenges. Manufacturing and services activities have continued to expand, while private consumption and investment have supported economic activity.

The central bank has also flagged prolonged supply chain disruptions, financial market volatility and weather-related shocks as downside risks to the growth outlook.

Measures To Attract Foreign Capital

One of the major announcements from the policy meeting is a package of measures aimed at strengthening capital inflows.

RBI has expanded the universe of government securities (G-Secs) eligible under the Fully Accessible Route (FAR) by including all new issuances of 15-year, 30-year and 40-year G-Secs. It has also removed limits related to short-term investments, concentration and individual securities for foreign portfolio investors under the General Route.

The central bank has further increased investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in listed equity instruments. Similar facilities have been extended to other eligible overseas individual investors.

Forex And Export-Related Announcements

RBI has introduced a concessional foreign exchange swap facility until September 30, 2026, to encourage external commercial borrowings by public sector undertakings. A similar facility has been announced for banks mobilising fresh FCNR(B) deposits, with RBI bearing the full hedging cost.