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The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to support the repo complaint unchanged for the 2nd clip successful a row, astatine 5.25%, Governor Sanjay Malhotra announced connected Friday (June 5, 2026).
While announcing the decision, Mr. Malhotra highlighted accrued marketplace volatility successful caller times and said that monetary argumentation astir the satellite has turned much cautious.
RBI Monetary Policy Committee updates connected June 5, 2026
“We stay assured to withstand these shocks, with minimum pain,” helium added noting that the planetary economical outlook remains clouded.
Expanding connected the determination taken by the MPC, Governor Malhotra said that the Committee took into relationship the uncertainty surrounding the duration and strength of the ongoing West Asia conflict, magnitude of its spillover effects, and the gait of restoration of proviso chains. Accordingly, the MPC felt it was prudent to hold for greater clarity to emerge, and accordingly chose to proceed with a neutral stance.
Real GDP maturation projection reduced; CPI ostentation beneath target
Speaking connected inflation, the RBI Governor said that header CPI ostentation was beneath the 4% people during March (3.4%) and April (3.5%) this year. While nutrient ostentation edged up, helium said, substance ostentation stay muted arsenic substance prices stay unchanged successful those months. Core ostentation remained unchangeable astatine 3.7%, the Governor added.
Governor Malhotra announced that the Real GDP maturation has been projected astatine 6.6%, down by 0.3% from earlier projection of 6.9% for FY27. “Prolonged planetary proviso concatenation disruptions, volatility successful planetary fiscal markets, and weather-related shocks proceed to airs downside risks to the home maturation outlook,” Mr. Malhotra said.
The Governor besides noted that nutrient outlook remains uncertain, and walk done of higher substance prices are present visible.
