The Reserve Bank of India’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, concluded its three-day deliberations and unanimously voted to keep the repo rate unchanged at 5.5%. Other key rates, including the Bank Rate (5.75%), Marginal Standing Facility (5.75%), and Standing Deposit Facility (5.25%), also remained unchanged.

Key Highlights

• RBI MPC keeps repo rate unchanged at 5.5%, adopts cautious stance amid global uncertainties.
• RBI unveils 22 measures to boost banking resilience, credit flow, ease of business, and rupee internationalization.

he decision comes amid global uncertainties such as high US tariffs on Indian shipments, volatile commodity prices, and ongoing geopolitical tensions. Since February 2025, the RBI had reduced the repo rate by 100 basis points in three tranches, but this time adopted a cautious, wait-and-watch stance.

Governor Malhotra also announced 22 measures aimed at strengthening banking resilience, enhancing credit flow, improving ease of doing business, and internationalising the Indian Rupee. Proposals include risk-based deposit insurance premiums, revised Basel III norms from 2027, liberalised foreign exchange rules, and greater flexibility in lending against securities.

The RBI retained India’s GDP growth projection at 6.8% for FY26, supported by strong domestic drivers despite global risks. Inflation is projected at 2.6% for FY26, with core inflation at 4.2%.

Malhotra stressed that the RBI will closely monitor inflation trends, geopolitical developments, and external demand before making further policy adjustments.