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Jun 05, 2026
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RBI MPC Meeting 2026: Sanjay Malhotra & Co hold rates steady at 5.25% as oil shock, weak rupee & West Asia war cloud outlook
The Reserve Bank of India (RBI) on Friday unanimously voted to keep the benchmark repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) retaining its neutral stance as policymakers weighed mounting inflation risks from elevated crude oil prices, a weakening rupee, and concerns over a below-normal monsoon against the need to support economic growth.
The six-member MPC, chaired by RBI Governor Sanjay Malhotra, also left the Standing Deposit Facility (SDF) rate unchanged at 5 per cent and the Marginal Standing Facility (MSF) rate and Bank Rate at 5.5 per cent. The committee decided to continue with the neutral policy stance, signalling flexibility to respond to evolving inflation and growth dynamics.
Announcing the decision after the three-day policy meeting, Malhotra said the global environment had deteriorated since the RBI's last policy review in April, with the continuing geopolitical impasse in West Asia weighing on the economic outlook. "Faced with difficult trade-offs, monetary policy has turned more cautious," he said.
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