RBI’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, has kept the RepoRate unchanged at 5.50% in its third bi-monthly policy review for FY26, announced today. The decision comes after a cumulative 100 basis points cut between February and June this year, including a surprise 50 bps reduction in the previous policy.
The MPC’s pause aligns with market expectations, as analysts anticipated the central bank would adopt a wait-and-watch stance amid moderating inflation and rising global trade tensions, especially following tariff actions by US President Donald Trump.
While a further 25 bps cut was not ruled out, economists including SBI’s Soumya Kanti Ghosh had noted that the RBI may prefer policy stability for now. The repo rate remains at 5.50%—a level intended to support economic recovery while managing inflation risks.
The RBI is also expected to revise its FY26 inflation forecast downward while maintaining its real GDP growth projection. The reverse repo rate remains unchanged as well, as the central bank continues to prioritise liquidity management and economic momentum.
The repo rate is the rate at which the RBI lends to commercial banks, impacting overall borrowing and deposit costs across the economy.
