The Reserve Bank of India (RBI), in its Monetary Policy Committee (MPC) meeting held on 5 June 2026, unanimously decided to keep the repo rate unchanged at 5.25%. The MPC also retained its neutral policy stance, citing global economic uncertainty, geopolitical tensions in West Asia, and inflation concerns.
RBI Governor Sanjay Malhotra stated that the decision was taken after assessing current macroeconomic and financial conditions. Accordingly, the Standing Deposit Facility (SDF) rate remains at 5.0%, while the Marginal Standing Facility (MSF) rate and Bank Rate remain at 5.5%.
The RBI highlighted risks arising from supply chain disruptions, rising energy prices, global market volatility, and ongoing geopolitical tensions. Despite these challenges, the Governor noted that the Indian economy is better positioned than in previous periods of global turbulence due to its strong economic fundamentals.
