RBI Holds Repo Rate at 5.25% for a Fourth Straight Meeting, Retains Neutral Stance

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, concluded its three-day meeting (August 3-5, 2026) and kept the repo rate unchanged at 5.25% for the fourth consecutive policy review, retaining a neutral stance. The SDF stays at 5.00% and the MSF and Bank Rate at 5.50%. The extended pause follows a cumulative 125 basis points of cuts delivered through 2025. The MPC retained FY27 real GDP growth at about 6.6%. Retail CPI inflation rose to 4.38% in June 2026, breaching the 4% medium-term target for the first time in 17 months, mainly on food prices, while core inflation stayed within comfort.