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RBI holds repo rate at 5.25% and keeps a neutral stance

The RBI maintained liquidity and facility rates, with the standing deposit facility at 5.0% and the marginal standing facility and Bank Rate at 5.50%.

Reported · Written up by our desk · Central Banks

The Reserve Bank of India kept the policy repo rate unchanged at 5.25% at its August 2026 meeting and voted to maintain a neutral stance, according to LiveMint Markets.

The central bank said the standing deposit facility rate remains at 5.0% and the marginal standing facility rate and the Bank Rate stay at 5.50% after the unanimous decision by the Monetary Policy Committee.

Alongside the decision, the RBI revised its inflation outlook, lifting its FY27 CPI forecast to 5.0% from 5.1% earlier, while adjusting quarterly estimates and projecting Q1FY28 inflation at 5.3%.

The RBI also raised its FY27 GDP growth estimate to 6.7% and said high frequency indicators point to steady domestic demand in Q1FY27, with private consumption robust and investment resilient despite global headwinds.

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