# RBI MPC Meeting 2026 LIVE: Repo rate unchanged at 5.25% in August monetary policy, FY27 GDP growth seen at 6.7% — retained record

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source: [news](https://highsignal.app/data/news) (news:india-mint-markets)  published 2026-08-05 02:08 ingested 2026-08-05 08:44

[original source ↗](https://www.livemint.com/market/stock-market-news/rbi-mpc-meeting-2026-live-updates-sanjay-malhotra-repo-rate-interest-rate-decision-inflation-monetary-policy-news-5-aug-11785856842963.html)

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RBI MPC Meeting 2026 LIVE: The Reserve Bank of India (RBI) announced its monetary policy decision today, 5 August 2026, Wednesday. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) held its third bi-monthly policy meeting for FY27 from August 3 to August 5.
RBI MPC decided to keep the policy repo rate unchanged at 5.25% and maintain a ‘neutral’ stance.
The MPC voted unanimously to keep the policy repo rate unchanged, RBI Governor Sanjay Malhotra said. In addition to leaving the benchmark lending rate unchanged, the RBI had also retained the Standing Deposit Facility (SDF) rate at 5%, while keeping the Marginal Standing Facility (MSF) rate and the bank rate unchanged at 5.5%.
The August RBI MPC meeting comes at a time when the macroeconomic environment is continuing to remain challenging, amid the ongoing impact of the US-Iran war in the Middle East on domestic growth and inflation dynamics.
"The re-escalation of the conflict since the first week of July has amplified volatility in energy prices. Early results of corporates for Q1 indicate healthy performance in the manufacturing sector. Private consumption continued to be driven by buoyant discretionary spending. Overall, the Indian economy performed better than expected in Q1," Malhotra said.
GDP and inflation projections
The RBI revised its FY27 GDP growth forecast upward to 6.7% from 6.6%, reflecting confidence in the domestic growth outlook.
It also raised its Q1 FY27 GDP growth projection to 7% from 6.6% and increased the Q2 forecast to 6.4% from 6.3%. The central bank left its Q3 projection unchanged at 6.5% and retained the Q4 estimate at 6.8%, indicating that it expects growth momentum to remain resilient through the rest of the financial year.
Meanwhile, CPI inflation for this year is now projected to be 5%, 10 basis points lower than our earlier projections of 5.1%
It revised the Q1 FY27 inflation estimate down to 4.1% from 4.2% and cut the Q2 forecast to 4.7% from 5.1%. The Q3 projection was retained at 5.9%, while the Q4 estimate was marginally raised to 5.5% from 5.4%.
Track live updates from the RBI MPC meeting here.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, " "The RBI’s decision to keep the repo rate unchanged at 5.25% has reinforced confidence in the Indian rupee by signalling policy stability and confidence in the domestic economy. Along with the RBI’s improved 6.7% GDP growth forecast, lower inflation outlook, and the recent decline in crude oil prices, the rupee has strengthened to around 95.20–95.08 against the US dollar. Going forward, sustained FII inflows, softer crude prices, and a stable dollar could keep the rupee biased towards appreciation, although global geopolitical developments will continue to be closely monitored."
Madhavi Arora, Chief Economist, Emkay Global Financial Services, said, "The RBI MPC kept the policy rate and neutral stance unchanged, as expected, while reiterating a data-driven wait-and-watch approach. The policy tone is cautious albeit constructive, balancing uncertainties from the Middle East conflict, tighter global financial conditions, and El Niño risks as against resilient domestic growth and robust FCNR+ inflows.
We maintain that the RBI will likely keep rates unchanged in FY27, with the MPC looking through the supply-driven inflation shock.
Additionally, with system liquidity likely to peak in 2QFY27 before normalizing in 2HFY27 as the FCNR+ window closes, the RBI is likely to use temporary liquidity absorption tools rather than tightening its policy stance going ahead."
‘The MPC’s unanimous decision to keep the repo rate unchanged at 5.25% while maintaining a neutral stance indicates a cautious and balanced approach amid evolving domestic and global uncertainties. With economic growth remaining resilient, the RBI appears comfortable maintaining policy stability while closely monitoring global risks, including the West Asia conflict, trade disruptions and elevated crude prices.
From an equity market perspective, policy continuity remains positive, particularly for rate-sensitive sectors such as banking, autos and real estate, while improving liquidity conditions and the upcoming festive season could support broader consumption and investment themes," said Vinit Bolinjkar - Head of Research - Ventura.
While private lenders remain under pressure, PSU banks outperformed.
Despite the positive market reaction in rate-sensitive sectors, banking stocks witnessed a mixed performance.
The Nifty Bank index slipped 0.6% from its intraday high to a low of 57,593.90.
In contrast, the Nifty PSU Bank index rose 1.4% to 8,597.85. Bank of Maharashtra, Union Bank of India, Bank of Baroda, Indian Bank, Bank of India, Canara Bank and UCO Bank gained between 1% and 2%. However, the Nifty Private Bank index declined 0.31%, weighed down by losses in Federal Bank, Axis Bank and HDFC Bank, which fell by up to 1%.
The Nifty Realty index also gained momentum, rising 2.6% to an intraday high of 915.10. Shares of Raymond and Godrej Properties jumped 5%, while DLF, Prestige Estates Projects, Lodha Developers and Oberoi Realty gained around 3% each.
Anuj Puri, Chairman of ANAROCK Group, said the unchanged policy rate provides stability at a time of macroeconomic uncertainty. However, he noted that while the decision supports market confidence, it may not be sufficient to revive demand in the mass housing segment.
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said a stable interest rate environment is expected to strengthen buyer confidence, provide greater certainty for businesses and investors, and ensure continued access to affordable financing. He added that policy continuity should sustain housing demand and investment across residential and commercial real estate while supporting the sector's long-term growth.
The Nifty Auto index climbed 1.5% to a record high of 29,489.2 during intraday trade, surpassing its previous lifetime high of 29,179.10 recorded on January 5, 2026. All constituents of the Nifty Auto index traded in positive territory.
Bosch emerged as the top gainer, rallying more than 5%. Exide Industries, Ashok Leyland, Hero MotoCorp and Samvardhana Motherson International gained between 2% and 3%. Apollo Tyres, MRF, Bharat Forge, TVS Motor and Mahindra & Mahindra also advanced more than 1%.
"As widely expected, the MPC unanimously decided to hold the repo rate unchanged at 5.25% and retain the neutral stance. The slight surprise element was the upward revision in GDP growth for FY27 to 6.7% from 6.6% earlier and the downward revision in CPI inflation for FY 27 to 5% from 5.1% earlier. Overall, the policy is optimistic about the emerging growth-inflation dynamics even amidst what the Governor called ‘persistent global uncertainty.’
According to the Governor, the rationale for holding the rates is the resilience of the Indian economy and benign core inflation.
The policy is positive for stock markets. Bond yields are stable," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Dnyanada Vaidya, Research Analyst - BFSI, Axis Direct.
“From a banking perspective, banks fared well in a seasonally weak Q1 with credit growth remaining strong and earnings remaining resilient supported by well contained credit costs and modest opex growth despite margin headwinds visible across most banks. Asset quality metrics holding up was the key positive during the quarter and improvement was visible across most lenders led by controlled slippages. Another highlight has been the strong FCNR(B) deposit mobilisation seen so far, which should support deposit growth in Q2. We expect margins to remain largely range-bound in the near-term and any improvement will be largely led by a favourable portfolio mix shift. We continue to favour banks with strong earnings growth visibility, healthy balance sheets and attractive valuations. Our preferred picks among banks are Kotak Mahindra Bank, ICICI Bank, SBI, Federal Bank and Ujjivan SFB, while we prefer Bajaj Finance, Shriram Finance and CreditAccess Grameen among NBFCs.”
Adhil Shetty, CEO, BankBazaar noted, “The RBI's decision to keep the repo rate unchanged at 5.25% means home loan borrowers are likely to see little immediate change in lending rates. Floating home loan rates currently range from about 7.0% to 9.4% at public sector banks and 7.3% to 9.3% at private banks, depending on the borrower's credit profile. With the MPC indicating that inflation remains the key policy focus, borrowers should view the current rate environment as one of stability. Those planning to take a home loan can compare lenders on spreads, processing charges and repayment flexibility rather than wait for a policy-led reduction in rates.”
Adhil Shetty, CEO, BankBazaar said, “By keeping the repo rate unchanged at 5.25%, the RBI has supported stability in deposit rates. Public sector banks are currently offering around 6.6% to 6.8% on popular one to three-year fixed deposits, while private banks are offering roughly 6.4% to 7.0% for similar tenures. Rather than investing the entire amount in a single FD, savers can consider laddering FDs by spreading deposits across different maturities. This provides periodic access to funds while reducing the risk of locking the entire corpus into one interest rate. As always, investors should evaluate returns after factoring in taxes and inflation, not just the headline FD rate.”
Adhil Shetty, CEO, BankBazaar
"The RBI's decision to keep the repo rate unchanged at 5.25% with a neutral stance signals that inflation has once again become the central policy concern. While growth remains resilient, the MPC has made it clear that it wants greater confidence that price pressures will ease before considering any further policy action. The recent rise in inflation appears to be driven largely by food and fuel rather than broad-based demand.
At the same time, geopolitical uncertainties and volatile energy prices continue to cloud the outlook. Until inflation shows a more durable moderation, the RBI is likely to prioritise price stability over supporting lower borrowing costs.
For households, this means little immediate change. Existing borrowers should not expect any relief in EMIs, while deposit rates are likely to remain broadly stable. The focus for families should now shift from anticipating rate cuts to managing the impact of inflation on monthly budgets."
Sachin Bajaj, Chief Investment Officer, Axis Max Life Insurance , on today’s RBI MPC announcement.
“The Monetary Policy Committee (MPC) meeting came against a backdrop of challenging global macroeconomic conditions, persistent geopolitical uncertainties, and concerns around inflation outlook.
As widely expected, the MPC decided to keep the policy repo rate unchanged at 5.25% and retained the policy stance as “Neutral”, reflecting a cautious approach amid emerging domestic and global risks.
The RBI highlighted uncertainties due to weaker monsoon season, potential impact on commodity prices, particularly energy prices, that continue to pose upside risks to the inflation trajectory.
Overall, today’s policy was a non-event for markets as the outcome is largely on expected lines. Going forward, we expect the MPC to be on wait and watch mode and wait for clarity on inflation outlook and future policy actions that are contingent on the evolving growth-inflation dynamics“
“The RBI’s decision to maintain the repo rate underscores its commitment to stability and prudent policymaking amid an uncertain global environment. By keeping key policy levers available for future action, the RBI has preserved the flexibility to respond to evolving conditions while reinforcing confidence across financial markets. The decision also reflects confidence in India’s resilient domestic demand, sustained investment momentum and healthy export performance, striking the right balance between supporting growth and maintaining macroeconomic stability.” – Pinank Shah, CEO, Capital India Finance Ltd.
RBI Governor Sanjay Malhotra said the economic outlook continues to remain uncertain due to multiple domestic and global factors. He pointed to uncertainties surrounding the Southwest monsoon, El Niño, geopolitical developments and global trade policy, which continue to cloud the outlook.
RBI Governor Sanjay Malhotra said, "Going ahead, the usual return of currency during the monsoon season, drawdown of government cash balances, and our special measures to attract capital inflows are expected to aid banking system liquidity in the near term."
The RBI Governor said, "Short-term money market rates, especially rates of commercial papers and certificates of deposit, moderated in July."
Malhotra said India's current account deficit (CAD) remained sustainable last year. He added that between April and June this year, the current account recorded a surplus.
The RBI Governor said foreign direct investment (FDI) inflows stood at $13.5 billion during the first quarter.
Announcing a regulatory move, Malhotra said, "We are now issuing draft guidelines for resuming licensing of the urban cooperative banks."
The RBI proposed measures to improve transparency in loan pricing. Malhotra said, "In order to enhance transparency in lending rates, it is proposed to harmonise the regulatory framework on advances across regulated entities."
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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RBI MPC Meeting 2026 LIVE: The Reserve Bank of India (RBI) announced its monetary policy decision today, 5 August 2026, Wednesday. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) held its third bi-monthly policy meeting for FY27 from August 3 to August 5.
RBI MPC decided to keep the policy repo rate unchanged at 5.25% and maintain a ‘neutral’ stance.
The MPC voted unanimously to keep the policy repo rate unchanged, RBI Governor Sanjay Malhotra said. In addition to leaving the benchmark lending rate unchanged, the RBI had also retained the Standing Deposit Facility (SDF) rate at 5%, while keeping the Marginal Standing Facility (MSF) rate and the bank rate unchanged at 5.5%.
The August RBI MPC meeting comes at a time when the macroeconomic environment is continuing to remain challenging, amid the ongoing impact of the US-Iran war in the Middle East on domestic growth and inflation dynamics.
"The re-escalation of the conflict since the first week of July has amplified volatility in energy prices. Early results of corporates for Q1 indicate healthy performance in the manufacturing sector. Private consumption continued to be driven by buoyant discretionary spending. Overall, the Indian economy performed better than expected in Q1," Malhotra said.
GDP and inflation projections
The RBI revised its FY27 GDP growth forecast upward to 6.7% from 6.6%, reflecting confidence in the domestic growth outlook.
It also raised its Q1 FY27 GDP growth projection to 7% from 6.6% and increased the Q2 forecast to 6.4% from 6.3%. The central bank left its Q3 projection unchanged at 6.5% and retained the Q4 estimate at 6.8%, indicating that it expects growth momentum to remain resilient through the rest of the financial year.
Meanwhile, CPI inflation for this year is now projected to be 5%, 10 basis points lower than our earlier projections of 5.1%
It revised the Q1 FY27 inflation estimate down to 4.1% from 4.2% and cut the Q2 forecast to 4.7% from 5.1%. The Q3 projection was retained at 5.9%, while the Q4 estimate was marginally raised to 5.5% from 5.4%.
Track live updates from the RBI MPC meeting here.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, " "The RBI’s decision to keep the repo rate unchanged at 5.25% has reinforced confidence in the Indian rupee by signalling policy stability and confidence in the domestic economy. Along with the RBI’s improved 6.7% GDP growth forecast, lower inflation outlook, and the recent decline in crude oil prices, the rupee has strengthened to around 95.20–95.08 against the US dollar. Going forward, sustained FII inflows, softer crude prices, and a stable dollar could keep the rupee biased towards appreciation, although global geopolitical developments will continue to be closely monitored."
Madhavi Arora, Chief Economist, Emkay Global Financial Services, said, "The RBI MPC kept the policy rate and neutral stance unchanged, as expected, while reiterating a data-driven wait-and-watch approach. The policy tone is cautious albeit constructive, balancing uncertainties from the Middle East conflict, tighter global financial conditions, and El Niño risks as against resilient domestic growth and robust FCNR+ inflows.
We maintain that the RBI will likely keep rates unchanged in FY27, with the MPC looking through the supply-driven inflation shock.
Additionally, with system liquidity likely to peak in 2QFY27 before normalizing in 2HFY27 as the FCNR+ window closes, the RBI is likely to use temporary liquidity absorption tools rather than tightening its policy stance going ahead."
‘The MPC’s unanimous decision to keep the repo rate unchanged at 5.25% while maintaining a neutral stance indicates a cautious and balanced approach amid evolving domestic and global uncertainties. With economic growth remaining resilient, the RBI appears comfortable maintaining policy stability while closely monitoring global risks, including the West Asia conflict, trade disruptions and elevated crude prices.
From an equity market perspective, policy continuity remains positive, particularly for rate-sensitive sectors such as banking, autos and real estate, while improving liquidity conditions and the upcoming festive season could support broader consumption and investment themes," said Vinit Bolinjkar - Head of Research - Ventura.
While private lenders remain under pressure, PSU banks outperformed.
Despite the positive market reaction in rate-sensitive sectors, banking stocks witnessed a mixed performance.
The Nifty Bank index slipped 0.6% from its intraday high to a low of 57,593.90.
In contrast, the Nifty PSU Bank index rose 1.4% to 8,597.85. Bank of Maharashtra, Union Bank of India, Bank of Baroda, Indian Bank, Bank of India, Canara Bank and UCO Bank gained between 1% and 2%. However, the Nifty Private Bank index declined 0.31%, weighed down by losses in Federal Bank, Axis Bank and HDFC Bank, which fell by up to 1%.
The Nifty Realty index also gained momentum, rising 2.6% to an intraday high of 915.10. Shares of Raymond and Godrej Properties jumped 5%, while DLF, Prestige Estates Projects, Lodha Developers and Oberoi Realty gained around 3% each.
Anuj Puri, Chairman of ANAROCK Group, said the unchanged policy rate provides stability at a time of macroeconomic uncertainty. However, he noted that while the decision supports market confidence, it may not be sufficient to revive demand in the mass housing segment.
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said a stable interest rate environment is expected to strengthen buyer confidence, provide greater certainty for businesses and investors, and ensure continued access to affordable financing. He added that policy continuity should sustain housing demand and investment across residential and commercial real estate while supporting the sector's long-term growth.
The Nifty Auto index climbed 1.5% to a record high of 29,489.2 during intraday trade, surpassing its previous lifetime high of 29,179.10 recorded on January 5, 2026. All constituents of the Nifty Auto index traded in positive territory.
Bosch emerged as the top gainer, rallying more than 5%. Exide Industries, Ashok Leyland, Hero MotoCorp and Samvardhana Motherson International gained between 2% and 3%. Apollo Tyres, MRF, Bharat Forge, TVS Motor and Mahindra & Mahindra also advanced more than 1%.
"As widely expected, the MPC unanimously decided to hold the repo rate unchanged at 5.25% and retain the neutral stance. The slight surprise element was the upward revision in GDP growth for FY27 to 6.7% from 6.6% earlier and the downward revision in CPI inflation for FY 27 to 5% from 5.1% earlier. Overall, the policy is optimistic about the emerging growth-inflation dynamics even amidst what the Governor called ‘persistent global uncertainty.’
According to the Governor, the rationale for holding the rates is the resilience of the Indian economy and benign core inflation.
The policy is positive for stock markets. Bond yields are stable," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Dnyanada Vaidya, Research Analyst - BFSI, Axis Direct.
“From a banking perspective, banks fared well in a seasonally weak Q1 with credit growth remaining strong and earnings remaining resilient supported by well contained credit costs and modest opex growth despite margin headwinds visible across most banks. Asset quality metrics holding up was the key positive during the quarter and improvement was visible across most lenders led by controlled slippages. Another highlight has been the strong FCNR(B) deposit mobilisation seen so far, which should support deposit growth in Q2. We expect margins to remain largely range-bound in the near-term and any improvement will be largely led by a favourable portfolio mix shift. We continue to favour banks with strong earnings growth visibility, healthy balance sheets and attractive valuations. Our preferred picks among banks are Kotak Mahindra Bank, ICICI Bank, SBI, Federal Bank and Ujjivan SFB, while we prefer Bajaj Finance, Shriram Finance and CreditAccess Grameen among NBFCs.”
Adhil Shetty, CEO, BankBazaar noted, “The RBI's decision to keep the repo rate unchanged at 5.25% means home loan borrowers are likely to see little immediate change in lending rates. Floating home loan rates currently range from about 7.0% to 9.4% at public sector banks and 7.3% to 9.3% at private banks, depending on the borrower's credit profile. With the MPC indicating that inflation remains the key policy focus, borrowers should view the current rate environment as one of stability. Those planning to take a home loan can compare lenders on spreads, processing charges and repayment flexibility rather than wait for a policy-led reduction in rates.”
Adhil Shetty, CEO, BankBazaar said, “By keeping the repo rate unchanged at 5.25%, the RBI has supported stability in deposit rates. Public sector banks are currently offering around 6.6% to 6.8% on popular one to three-year fixed deposits, while private banks are offering roughly 6.4% to 7.0% for similar tenures. Rather than investing the entire amount in a single FD, savers can consider laddering FDs by spreading deposits across different maturities. This provides periodic access to funds while reducing the risk of locking the entire corpus into one interest rate. As always, investors should evaluate returns after factoring in taxes and inflation, not just the headline FD rate.”
Adhil Shetty, CEO, BankBazaar
"The RBI's decision to keep the repo rate unchanged at 5.25% with a neutral stance signals that inflation has once again become the central policy concern. While growth remains resilient, the MPC has made it clear that it wants greater confidence that price pressures will ease before considering any further policy action. The recent rise in inflation appears to be driven largely by food and fuel rather than broad-based demand.
At the same time, geopolitical uncertainties and volatile energy prices continue to cloud the outlook. Until inflation shows a more durable moderation, the RBI is likely to prioritise price stability over supporting lower borrowing costs.
For households, this means little immediate change. Existing borrowers should not expect any relief in EMIs, while deposit rates are likely to remain broadly stable. The focus for families should now shift from anticipating rate cuts to managing the impact of inflation on monthly budgets."
Sachin Bajaj, Chief Investment Officer, Axis Max Life Insurance , on today’s RBI MPC announcement.
“The Monetary Policy Committee (MPC) meeting came against a backdrop of challenging global macroeconomic conditions, persistent geopolitical uncertainties, and concerns around inflation outlook.
As widely expected, the MPC decided to keep the policy repo rate unchanged at 5.25% and retained the policy stance as “Neutral”, reflecting a cautious approach amid emerging domestic and global risks.
The RBI highlighted uncertainties due to weaker monsoon season, potential impact on commodity prices, particularly energy prices, that continue to pose upside risks to the inflation trajectory.
Overall, today’s policy was a non-event for markets as the outcome is largely on expected lines. Going forward, we expect the MPC to be on wait and watch mode and wait for clarity on inflation outlook and future policy actions that are contingent on the evolving growth-inflation dynamics“
“The RBI’s decision to maintain the repo rate underscores its commitment to stability and prudent policymaking amid an uncertain global environment. By keeping key policy levers available for future action, the RBI has preserved the flexibility to respond to evolving conditions while reinforcing confidence across financial markets. The decision also reflects confidence in India’s resilient domestic demand, sustained investment momentum and healthy export performance, striking the right balance between suppor
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