RBI MPC Meeting 2026 Highlights: RBI Keeps Repo Rate at 5.25%; No Proposal to End FCNR(B) Scheme Early

The Reserve Bank of India (RBI) is set to announce its third bi-monthly monetary policy of FY27 today, August 5, 2026. The Monetary Policy Committee (MPC), which has been meeting from August 3 to August 5, will reveal its policy decision at 10:00 AM.

The Reserve Bank of India (RBI) will live stream Governor Sanjay Malhotra's monetary policy statement on its official YouTube channel from 10:00 AM. The Governor's post-policy press conference is scheduled for 12:00 PM and will also be streamed live on the RBI's official YouTube channel, website and X handle.

At its June 2026 Monetary Policy Committee (MPC) meeting, which concluded on June 5, the Reserve Bank of India unanimously decided to keep the benchmark repo rate unchanged at 5.25 per cent. The central bank also retained its neutral policy stance, signalling that future policy decisions would remain data dependent.

Ahead of the RBI's August 2026 MPC decision, SBI Research said it expects the central bank to keep the repo rate unchanged. The report added that risks such as oil price volatility, rupee pressure and higher inflation projections could lead the RBI to adopt a cautious policy tone. Read more

Nikunj Saraf, CEO, Choice Wealth said, "Our view is that the MPC holds at 5.25% this week. A cut is simply off the table. June CPI at 4.38% against 3.93% in May, with food inflation at 5.32%, is not a backdrop that permits easing and the RBI has already raised its FY27 inflation projection to 5.1%. We expect the stance to remain neutral, but the tone to harden. Any meaningful policy action, in our reading, sits in the H2 and the direction of that action is no longer one-way. What has changed is the external constraint."

He added, "The Fed held in July, but on a 9–3 vote with three dissents seeking a hike, and markets have moved from pricing cuts to pricing one increases by year-end. If the Fed tightens on crude-driven inflation, the rate differential narrows, the rupee already near 95, against an all-time low of 96.96 comes under pressure, and the RBI's room shrinks with it. That is the scenario we are underwriting. On market reaction: a pause is fully priced, so everything rests on the commentary."

Anuj Puri, chairman, Anarock Group says, “From the upcoming monetary policy, the real estate sector anticipates the benchmark repo rate will remain unchanged at 5.25 per cent. A rate cut would certainly go a considerable way in directly stimulating homebuyer sentiment; however, we expect the central bank to remain cautious given sticky inflation and ongoing global volatility. It is nevertheless true that the sector is at a critical juncture.”

Puri: added, “Maintaining the status quo on the repo rate does provide predictability for project financing, but it does not alleviate these affordability challenges. As we approach the festive season, we certainly look forward to a future pivot toward rate easing, as this would revitalize overall sales volumes - particularly for affordable homes.” Read More

Prachi Kele, Lead Economist, PL Capital said, "We expect MPC to adopt a cautious tone amid ongoing war-related uncertainties, while reiterating a data-dependent approach for future policy decisions. For the August meeting, we expect a status quo, with the policy rate maintained at 5.25%."

She added, A favourable response to FCNR(B) measures, improving FPI inflows as the AI- and semiconductor-led equity rally cools amid improved kharif sowing support the thesis for a pause. Food inflation is likely to remain contained in FY27 as El Niño risks recede and monsoon conditions remain favourable, while growth risks stay broadly balanced."

The Monetary Policy Committee's decision is due shortly, with attention on whether the RBI maintains the status quo on rates.

RBI Governor Sanjay Malhotra has started announcing the August 2026 Monetary Policy Committee (MPC) decision.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5.25 per cent. The committee has also maintained a ‘neutral’ policy stance.

RBI Governor Sanjay Malhotra said headline inflation is expected to increase in the near term, driven by higher oil and food prices, before peaking in Q3 and starting to decline thereafter.

The Reserve Bank of India has projected real GDP growth for FY27 at 6.7 per cent, up from its previous estimate.

The Reserve Bank of India (RBI) has projected real GDP growth at 7 per cent in Q1 FY27, 6.4 per cent in Q2, 6.5 per cent in Q3 and 6.8 per cent in Q4.

The Reserve Bank of India (RBI) has projected CPI inflation at 5 per cent for FY27, with quarterly estimates revised to 4.1 per cent in Q1, 4.7 per cent in Q2, 5.9 per cent in Q3 and 5.5 per cent in Q4.

The RBI Monetary Policy Committee, led by Governor Sanjay Malhotra, has projected core inflation at 4.3 per cent for FY27.

RBI Governor Sanjay Malhotra said India continues to remain the world’s fastest-growing large economy.

The RBI has kept the Standing Deposit Facility (SDF) rate unchanged at 5.00 per cent, while the Marginal Standing Facility (MSF) rate and Bank Rate remain at 5.50 per cent.

“Going forward, El Niño’s impact on temporal and spatial rainfall distribution and volatile global oil prices remain key risks to the inflation outlook,” the RBI said in its August 2026 Monetary Policy Statement. The central bank added that proactive supply management and adequate foodgrain stocks should provide comfort.

“The supply-side pressures caused by the West Asia conflict have eased somewhat since June 2026, leading to withdrawal of temporary measures and normalisation of key input supplies. However, the re-escalation of the conflict since the first week of July has increased volatility in energy prices and renewed uncertainty about supply chains,” the RBI said.

“Growth continues to be supported by resilient domestic demand, sustained expansion in manufacturing and services activity, and robust exports, reaffirming India’s position as the world’s fastest-growing major economy,” the RBI said in its August 2026 Monetary Policy Statement.

The RBI said India’s external financing conditions remained supportive, with gross FDI inflows rising to US$ 30.7 billion during April-June 2026. FPI flows also saw a turnaround during June-July 2026, recording net inflows of US$ 7.1 billion, mainly led by the debt segment.

The RBI said system liquidity, measured through the net position under the Liquidity Adjustment Facility (LAF), stood at an average daily surplus of Rs 1 lakh crore since the June 2026 MPC meeting. The central bank expects monsoon currency inflows, lower government cash balances and measures to attract capital inflows to support liquidity conditions in the near term.

Ashok Singh Jaunapuria, Managing Director & CEO, SS Group, said, "We welcome RBI's decision to keep repo rate unchanged at 5.25%. At this time of global uncertainty, stability is just as important as a rate cut for the real estate sector. A stable interest rate environment gives homebuyers the confidence to move forward with their purchase decisions and allows developers to plan projects with more certainty.

He added, "The housing market has been strong for the last few years, backed by strong demand from end-users, better infrastructure and a positive outlook about the market. We expect this policy stability to continue to give confidence to buyers and support healthy growth in the residential sector."

Sarika Grover , Co founder of LoansJagat said, "Today's Monetary Policy Committee review ended with the repo rate held at 5.25%, a unanimous call, and the neutral stance carried forward. SDF sits at 5%, MSF and bank rate at 5.5%. Inflation moved the other way. FY27 CPI is now estimated at 5%, 10 bps lower, moving unevenly through the year: 5.3% in Q1, 4.7% in Q2, 5.9% in Q3, easing to 5.5% in Q4. Core inflation is projected at 4.3%, with food and fuel driving most of the headline pressure.

She added that the RBI also issued draft guidelines to resume UCB licensing and proposed standardising interest rate rules across regulated entities. Malhotra flagged the West Asia conflict as the key external risk to watch. For borrowers, EMIs stay unchanged. FD holders may want to lock in current rates.

Sahil Agarwal, CEO, Nimbus Group said, “The RBI’s decision to keep the repo rate unchanged reflects a calibrated approach in an environment where global risks, particularly elevated energy prices and geopolitical uncertainty, continue to pose inflationary challenges.”

He added that for the real estate sector, policy predictability is often as valuable as monetary easing. Stable borrowing costs provide developers with greater visibility on project financing and execution while enabling homebuyers to make long-term purchase decisions with increased confidence.

Parimal Kumar Shivendu, Executive Director & Group Head, Easebuzz said, “The RBI's decision to maintain the repo rate while retaining a neutral stance reflects a balanced approach in an environment where global uncertainties continue to persist, even as domestic growth remains resilient. The upward revision in the GDP growth forecast reinforces confidence in India’s underlying economic momentum, which is encouraging for businesses across sectors.”

He added that for the digital payments ecosystem, sustained economic activity, rising formalisation and continued digital adoption will remain the key growth drivers. As more enterprises and MSMEs invest in technology-led financial operations, the focus will increasingly shift towards building scalable, secure and efficient payment infrastructure that supports long-term business growth.

In the post-policy press conference, RBI Governor Sanjay Malhotra said that the rupee could strengthen going forward if geopolitical tensions ease and ongoing conflicts move towards de-escalation. He added that a reduction in global uncertainties could provide support to the domestic currency.

RBI Governor Sanjay Malhotra said that the central bank’s approach is neither dovish nor hawkish.

Rohit Garg, Co Founder and CEO of Olyv said, "The RBI's decision to keep the repo rate unchanged at 5.25 per cent, while maintaining a neutral stance, provides much-needed policy stability at a time when the broader economic environment continues to remain uncertain. For digital lenders, this creates greater predictability around funding costs and strengthens our ability to plan for sustainable, long-term credit growth."

He added that a stable rate environment also benefits borrowers by improving affordability and enabling more confident financial planning. As digital credit reaches a wider set of consumers, the industry's responsibility extends beyond improving access to ensuring that credit is offered responsibly, transparently, and in line with customers' repayment capacity."

RBI Governor Sanjay Malhotra said there is no proposal under consideration to close the Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit scheme prematurely. He made the statement while addressing the press conference after the Monetary Policy Committee (MPC) meeting.

RBI Governor Sanjay Malhotra said India’s economic growth could potentially reach 7%, though the central bank’s current forecast stands at 6.7%.

RBI Governor Sanjay Malhotra said India is expected to introduce plastic (polymer) notes from the beginning of the next financial year, subject to the outcome of ongoing field trials.

Beyond the monetary policy announcement, the RBI has proposed regulatory changes, including draft guidelines for restarting the licensing process for new Urban Co-operative Banks (UCBs). The central bank has also proposed standardising interest rate regulations across different categories of regulated entities.

Nirmal K. Minda, President, ASSOCHAM, said that the RBI's decision to maintain the repo rate at 5.25 per cent reflects confidence in India's strong macroeconomic fundamentals. He added, "A stable policy rate will support business sentiment, encourage investments and sustain economic growth while providing the necessary flexibility to respond to evolving global developments."

Vijay Kuppa, CEO, InCred Money said that the MPC’s decision to maintain a status quo on the benchmark lending rate is in line with our expectations. The central bank continues to prioritise long term stability while maintaining flexibility to act if needed.

He added, "Better than expected growth and lower than estimated inflation could likely mean a continuation in status quo. For investors the stability in monetary policy is constructive. The commentary on inflation, growth and liquidity bodes well for financial markets and we could see bond yields and the rupee remaining rangebound subject to global conditions."

A neutral policy stance means the RBI is neither trying to stimulate economic growth nor restrict it. Instead, the central bank remains in a “wait and watch” mode, monitoring inflation, growth and other macroeconomic indicators before deciding on future interest rate changes.

Rajagopal Menon, Vice President, WazirX said, “The RBI’s decision to hold the repo rate at 5.25 per cent reflects caution. Growth remains resilient and liquidity is comfortable, but rising food and fuel prices, geopolitical tensions and disrupted trade routes leave little room for a premature rate cut. For crypto markets, the pause is broadly neutral. Domestic monetary policy influences liquidity and risk appetite, but global interest rates, institutional flows and regulation remain the stronger drivers of digital asset prices.

He added, "The more important signal is that monetary conditions remain eased domestically at a time when digital assets are becoming increasingly connected to global liquidity and institutional capital. Indian investors should treat this as a supportive macroeconomic shift. As financial conditions ease and investors seek higher-growth opportunities, digital assets stand to benefit alongside other risk assets.”

The RBI’s decision to keep the repo rate unchanged means there is unlikely to be any immediate change in home loan EMIs for borrowers with floating-rate loans. Adhil Shetty, CEO, BankBazaar, said, "Those planning to take a home loan can compare lenders on spreads, processing charges and repayment flexibility rather than wait for a policy-led reduction in rates." Read more.

Equity markets reacted positively to the RBI’s decision to keep the repo rate unchanged at 5.25%, with investors taking comfort from the higher FY27 GDP growth forecast and lower inflation projection. Realty stocks including Godrej Properties, DLF, Oberoi Realty, Lodha Developers, Sobha and Prestige Estates traded higher, while Bosch, Hero MotoCorp, Ashok Leyland, Sona BLW Precision Forgings and Samvardhana Motherson led gains among auto stocks. Read More.

CREDAI President Shekhar Patel said the RBI’s decision to keep the repo rate unchanged provides policy continuity at a time of global economic uncertainty. He said stable interest rates will help developers plan projects with greater certainty while enabling homebuyers to make informed borrowing decisions for long-term housing investments. Read More

Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd said, “Now, a rate hold is better than a rate hike, sure, but 5.25% is still pretty elevated for first-time buyers in the affordable segment. The EMIs on Rs 30–40 lakh loans remain steep and without an actual rate cut, the affordability gap doesn’t really close."

He said, "The real lift for this segment will likely come from state-level support, or maybe higher PMAY allocations, not only from RBI decisions alone. Builders targeting this band should really intensify, using creative payment structures like 5:95 plans to bridge the difference. The neutral stance is reassuring but it doesn’t address the demand-side liquidity crunch that smaller buyers deal with every day.”

Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank said, “The RBI's decision to hold the repo rate at 5.25% and continue with its neutral stance reflects confidence in the resilience of the Indian economy, even as global conditions remain volatile amid the West Asia conflict and shifting trade policies. The Reserve Bank's own assessment shows the banking sector continues to hold strong capital buffers, healthy liquidity and improving asset quality, which reinforces confidence in the stability of the financial system."

He added, "For our customers and businesses, this stability translates into predictable borrowing costs and continued credit flow, particularly to MSMEs and other productive sectors. The proposed harmonisation of interest rates on advances across all regulated entities, along with the draft guidelines for resuming licensing of urban co-operative banks, will further strengthen transparency and customer protection. We remain committed to supporting sustainable credit growth as India continues to build on its position as the world's fastest-growing major economy.”

D. Muthukumaran, Group Chief Financial Officer, Essar said, "The RBI's upward revision of the GDP growth outlook, despite global uncertainties, is a positive affirmation of India's economic resilience. Equally welcome is the decision to hold the repo rate steady through an active investment cycle, even with inflationary pressures at play, as it provides businesses with much-needed policy stability. For infrastructure and other long-gestation sectors, a stable cost of capital is as important as sustained public investment in supporting long-term growth."

Sumit Gupta, Co Founder at CoinDCX said, “The RBI's decision to keep the repo rate unchanged at 5.25% and maintain a neutral stance reflects a balanced approach. It aims to manage inflation while supporting economic growth in an uncertain global environment. Policy stability is an important signal for investors. It gives them greater confidence to focus on long-term financial goals instead of reacting to short-term market movements.”

He said, “As India's investment landscape evolves, more investors are building diversified portfolios. Along with traditional asset classes, they are also exploring emerging digital assets. Crypto is gradually moving beyond a niche investment and is becoming a long-term portfolio allocation for those seeking exposure to blockchain innovation and the digital economy.”

The Reserve Bank of India’s (RBI’s) decision to keep the repo rate unchanged at 5.25 per cent in its recent monetary policy committee (MPC) meeting is unlikely to resurrect the dipping demand in affordable homes, according to real estate industry experts. While it restore sentiment among buyers, as it will prevent further escalation in home loan equated monthly instalments (EMIs). Read More

Following the August policy review, the RBI’s next Monetary Policy Committee (MPC) meeting is scheduled from October 5 to October 7, 2026. The remaining meetings for FY27 will be held from December 2 to December 4, 2026, and February 3 to February 5, 2027.