RBI Monetary Policy: On Wednesday, August 6, RBI Governor Sanjay Malhotra kept the repo rate unchanged at 5.5 per cent and maintained the policy stance as “neutral.”
RBI noted the country’s growth outlook remains healthy and inflation is expected to be under control this year, largely due to a healthy monsoon.
RBI MPC Meeting: Key highlights
1. What did the RBI Governor say about the repo rate and policy stance?
The RBI Governor said that the central bank’s Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 5.5 per cent and the policy stance unchanged at neutral.
In the June policy meeting, the RBI had delivered a larger-than-expected 50 bps rate reduction and revised its stance to ‘neutral’ from ‘accommodative’.
2. What did the RBI Governor say about India’s GDP growth?
Despite persisting uncertainty over the Trump tariffs and global factors, the RBI maintained real GDP growth for FY26 at 6.5 per cent.
RBI projected Q1FY26 GDP growth at 6.5 per cent, Q2 at 6.7 per cent, Q3 at 6.6 per cent, Q4 at 6.3 per cent and Q1FY27 at 6.6 per cent.
Track RBI MPC Live Updates Here
3. What did the RBI Governor say about India’s inflation?
The central bank cut the FY26 CPI inflation forecast to 3.1 per cent from 3.7 per cent earlier. Q2FY26 inflation estimates were trimmed to 2.1 per cent from 3.4 per cent earlier, Q3 estimates were lowered to 3.1 per cent from 3.9 per cent, and Q4 estimates were maintained at 4.4 per cent.
However, the central bank expects a spike in inflation next year. The RBI projected CPI inflation for Q1FY27 at 4.9 per cent.
(This is a developing story. Please check back for fresh updates.)
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