RBI MPC Meeting 2026: In line with market expectation, the Reserve Bank of India kept repo rate unchanged at 5.25 percent on Friday. The decision, taken unanimously, comes after the six-member monetary policy committee held deliberations for two days.
At the start of his address, RBI Governor Sanjay Malhotra pointed out that India remains confident to withstand geopolitical challenges while adding that global economic outlook remains clouded amid the ongoing Iran war.
Further, the RBI governor said that weak monsoon could also impact growth and inflation. He, however, added that “adequate stocks provide comfort”.
RBI Governor Sanjay Malhotra Address: Key Highlights:-
FY25 GDP forecast kept unchanged at 7.6 per cent
MSF and Bank rate at 5.5%
Core inflation stable at 3.7% in March-April
CPI inflation for this 2026-27 projected to be 5.1%
FDIs show continued interest of foreign investors in India.
Despite FII outflows from Indian equities, India’s forex reserve healthy
The Crude Oil prices (Indian Basket) have averaged US$ 110/Barrel during the last 2 months
Indications are that the average Crude Oil prices this year will be substantially higher than what was assumed during the last Policy
The partial pass through of high global crude oil prices to Petrol and Diesel prices started in May
Considering all these factors, the CPI Inflation for this year is now projected at 5.1% , 50 basis points more than what was earlier projected
Rationale for Monetary Policy Decisions
RBI Governor Sanjay Malhotra said, “The global environment has deteriorated since the last policy meeting with the conflict lingering amidst a fragile truce. The adverse implications of the extended disruption in supply chains and elevated energy prices are reflected in the moderation of growth and increase in inflation projections from the April policy as discussed above.”
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