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RBI MPC Unanimously Holds Repo Rate at 5.25%, Maintains Neutral Stance on Inflation

Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link
05 Aug 2026
~2 min
Source: Indian Express
Key Data:Repo rate 5.25%CPI June 2026: 4.38%Core inflation 2.3-2.5%GDP forecast 6.7%Crude oil basket $85.19/barrelQ3 CPI projection 5.9%
Bodies:RBIMPC
Practice MCQs from today's news ▸
What This Article Covers

1.RBI MPC unanimously held repo rate at 5.25% in August 2026 meeting, maintaining a neutral stance.

2.CPI inflation rose to 4.38% in June (from 3.93% in May), driven by food and fuel prices, while core inflation remains subdued at 2.3-2.5%.

3.RBI marginally upped GDP growth forecast to 6.7% for the year, citing robust private consumption and resilient investment.

The Big Picture
Prelims · HighMains · Medium

The RBI's MPC unanimously kept the repo rate unchanged at 5.25% with a neutral stance, as inflation driven by food and fuel prices remains a concern. For exam aspirants, this is a high-yield topic covering monetary policy tools, inflation dynamics, and global central bank trends.

Exam Lens

Quick Exam Facts From News

Repo Rate (August 2026)5.25% (unchanged)
MPC DecisionUnanimous vote to hold rates
Monetary Policy StanceNeutral
CPI Inflation (June 2026)4.38%
Core Inflation (ex-precious metals)~2.3-2.5%
GDP Growth Forecast (FY 2026-27)6.7% (revised up)
India's Crude Oil Basket Price~$85.19/barrel
Projected CPI Peak QuarterOct-Dec 2026 (Q3) at 5.9%

1-Minute Revision

  • ›Repo Rate (August 2026): 5.25% (unchanged)
  • ›MPC Decision: Unanimous vote to hold rates
  • ›Target this Data: Repo rate 5.25% (August 2026), CPI June 2026: 4.38%, GDP forecast: 6.7%
  • ›Target this Nodal Body: Monetary Policy Committee (MPC) of RBI, under RBI Act 1934
  • ›Target this Legal Point: Section 45ZB of RBI Act, 1934 (constitution of MPC)

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which committee within the RBI is responsible for setting the repo rate?

Q2Statement-basedHard

Consider the following statements:

1. The RBI's MPC voted unanimously to keep the repo rate unchanged at 5.25% in its August 2026 meeting.

2. Core inflation in India (excluding precious metals) was around 4.38% in June 2026.

3. The RBI marginally revised its GDP growth forecast for the year to 6.7%.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the RBI's August 2026 monetary policy, what is the projected CPI inflation for the October-December quarter (Q3) of the current financial year?

Q4Application/ImpactMedium

Why did the RBI's MPC decide to keep the repo rate unchanged despite rising CPI inflation?

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