RBI Maintains Status Quo on Rates Amid Global Economic Uncertainty

The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25% following the Monetary Policy Committee (MPC) meeting held on June 5, 2026. The MPC unanimously voted to maintain the current rate, while retaining its "Neutral" policy stance, indicating that future decisions will depend on evolving economic conditions and incoming data.

The RBI revised its economic projections, lowering the FY27 GDP growth forecast to 6.6% from the earlier estimate of 6.9%. At the same time, it raised the inflation forecast for FY27 to 5.1% from 4.6%, citing higher crude oil prices and persistent global uncertainties. The central bank also highlighted risks arising from rising oil prices, a weakening rupee, tensions in West Asia, and monsoon-related concerns. Additionally, the RBI announced measures aimed at attracting greater dollar inflows and strengthening India's external financial stability. Home loan borrowers, however, will not receive any immediate EMI relief as interest rates remain unchanged.