The Reserve Bank of India on Wednesday kept the repo rate steady at 5.50% in its third bi-monthly policy for FY26, maintaining a neutral stance. RBI Governor Sanjay Malhotra highlighted that the Indian economy continues to show resilience and holds “bright prospects in a changing world order,” even as global tariff uncertainties, triggered by US President Donald Trump’s recent trade actions, pose fresh challenges.
Malhotra said that the overall setting remains favourable, with a supportive RBI and government backing aiding economic momentum. “Geopolitical uncertainty has somewhat abated,” he noted, while also emphasizing that “opportunities are there for the taking and we are creating an enabling environment.”
The Monetary Policy Committee concluded its meeting between August 4 and 6, with expectations of a downward revision in FY26 inflation projection and no change in the real GDP growth outlook. Economists believe the central bank may still frontload further cuts if the macro environment allows.
