Debasis Mohapatra
Bengaluru, 5 August 2026
Reserve Bank of India on Wednesday maintained status quo in repo rate and also retained its neutral policy stance.
The Monetary Policy Committee (MPC), the six member policy making body of RBI, unanimously voted to keep the policy rate unchanged at 5.25%.
However, Indian central bank flagged inflation risks to the domestic economy going ahead. RBI Governor, Sanjay Malhotra said that the West Asia conflict, uncertainty around US tariffs and disruptions to global trade routes and supply chains had made the global economic environment increasingly unstable. He also said volatile commodity prices, and currencies were adding to the risk.
According to the RBI, headline inflation had risen above the central bank’s target though first-quarter inflation was slightly below its projections owing to limited pass-through of cost pressures. The Governor said that broader underlying inflation remained benign.
The Governor, however, flagged up the risks of inflation rising going ahead and would pick during third quarter of current financial year. Inflation is expected to moderate after third quarter, he added.
