RBI MPC Meeting Schedule 2026-27: RBI Keeps Repo Rate Unchanged at 5.25%

The Reserve Bank of India’s Monetary Policy Committee kept the repo rate unchanged at 5.25% in its August 2026 policy meeting, maintaining a status quo for the fourth consecutive review. The committee also retained its neutral stance, signalling that future rate action will depend on incoming inflation and growth data.

The August MPC meeting was held from August 3 to August 5, 2026. The decision was in line with market expectations, as the central bank continues to monitor inflation risks, global uncertainties, crude oil price volatility, weather-related concerns and supply-chain disruptions.

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RBI MPC August 2026 Decision

RBI Governor Sanjay Malhotra-led Monetary Policy Committee decided to keep the policy repo rate under the liquidity adjustment facility unchanged at 5.25%. Consequently, the Standing Deposit Facility rate stands at 5.00%, while the Marginal Standing Facility rate and the Bank Rate remain at 5.50%.

This is the fourth straight MPC meeting in which the RBI has kept the repo rate unchanged. The central bank had reduced the repo rate by a total of 125 basis points in 2025, with the last cut taking the rate to 5.25%. Since then, the RBI has remained on pause through 2026.

The neutral stance gives the central bank flexibility to move in either direction, depending on how inflation and growth evolve in the coming months.

Key Highlights of the August 2026 RBI MPC Meeting

The RBI kept the repo rate unchanged at 5.25% for the fourth consecutive policy review. The MPC retained its neutral stance, allowing room for future policy action based on inflation and growth trends. The RBI raised its FY27 GDP growth projection to 6.7%, from 6.6% earlier. The RBI lowered its FY27 CPI inflation forecast to 5.0%, from 5.1% earlier. The central bank flagged risks from global uncertainty, crude oil price movement, weather conditions, supply-chain disruptions and imported inflation pressures.

RBI Revises GDP Growth and Inflation Forecasts

Along with the rate decision, the RBI also revised its macroeconomic projections.

The central bank raised its FY27 real GDP growth forecast to 6.7%, compared with the earlier estimate of 6.6%. According to reports, the RBI expects growth to be supported by resilient domestic demand, manufacturing activity and exports, although global risks remain a concern.

The RBI also lowered its FY27 CPI inflation projection to 5.0%, from 5.1% earlier. However, inflation risks remain on the radar due to food and fuel prices, weather conditions, crude oil volatility and geopolitical developments.

RBI MPC Meeting Schedule for FY 2026-27

The Reserve Bank of India had announced the official MPC meeting schedule for FY 2026-27 on March 23, 2026. As per Section 45ZI of the Reserve Bank of India Act, 1934, the committee will meet six times during the financial year.

Implications of the Latest Rate Cut

With the repo rate maintained at 5.25%, borrowers are likely to benefit from stable lending rates as banks continue to transmit the cumulative rate cuts implemented since February 2025. The pause is expected to support businesses and consumers through predictable borrowing costs and adequate liquidity.

However, the RBI highlighted risks from elevated crude oil prices, geopolitical tensions, supply disruptions, and uncertain monsoon conditions. With the MPC retaining a neutral stance, future rate moves will remain dependent on incoming growth and inflation data.

Stay tuned for updates on RBI’s liquidity measures and future MPC meetings in FY 2026-27.

When Is the Next RBI MPC Meeting?

The next RBI MPC meeting is scheduled for October 5, 6 and 7, 2026. This will be the fourth MPC meeting of FY 2026-27.

The October policy meeting will be closely watched for signals on the future path of interest rates. After four consecutive pauses, investors, borrowers and businesses will look for the RBI’s assessment of inflation, growth, crude oil prices, currency movement and global risks.

What Is the RBI MPC?

The Monetary Policy Committee is responsible for deciding India’s key policy interest rate, known as the repo rate. The repo rate is the rate at which the RBI lends short-term funds to commercial banks, usually against government securities.

Changes in the repo rate can influence borrowing costs across the economy. A repo rate hike can make loans costlier over time, while a repo rate cut can make borrowing cheaper if banks pass on the benefit. When the rate is kept unchanged, lending and deposit rates may remain broadly stable, although banks can still revise rates based on their own funding costs and business strategy.

The MPC usually meets once every two months to review inflation, growth, liquidity conditions, global economic developments and other macroeconomic indicators before announcing its policy decision.

Current Repo Rate in India

As of the August 2026 MPC meeting, the repo rate in India is 5.25%. The RBI kept the rate unchanged and retained its neutral stance in the latest policy review.

The Standing Deposit Facility rate is 5.00%, while the Marginal Standing Facility rate and the Bank Rate are 5.50%.

Why RBI Kept the Repo Rate Unchanged

The RBI’s decision reflects a cautious policy approach. Inflation has not eased enough for the central bank to signal aggressive rate cuts, while growth remains strong enough to allow policymakers to wait for more clarity.

The central bank is also watching global developments closely. Crude oil volatility, geopolitical tensions, imported inflation and weather-related risks can affect inflation in India. At the same time, domestic demand and economic activity continue to support growth.

By keeping the repo rate unchanged and retaining a neutral stance, the RBI has indicated that it wants to remain flexible rather than commit to a fixed policy path.

What the RBI Decision Means for Borrowers and Investors

For borrowers, the repo rate pause means there may not be an immediate change in loan interest rates linked to external benchmarks. However, actual loan rates will depend on individual banks and lenders.

For fixed deposit investors, deposit rates may also remain broadly stable in the near term. Banks may still adjust rates depending on liquidity conditions and competition for deposits.

For equity and bond market investors, the RBI’s neutral stance means policy decisions will continue to depend on inflation and growth data. Bond yields, banking stocks, rate-sensitive sectors and interest-rate-linked products may react to future inflation prints and RBI commentary.

Conclusion

The RBI MPC’s August 2026 decision kept the repo rate unchanged at 5.25% and maintained a neutral policy stance. The central bank also raised its FY27 GDP growth forecast to 6.7% and lowered its FY27 inflation projection to 5.0%.

The next MPC meeting will be held from October 5 to October 7, 2026. Until then, the focus will remain on inflation trends, crude oil prices, monsoon-related risks, global uncertainty and the strength of domestic growth.