A positive note is on the growth front that RBI expects to hold and possibly improve
FinTech BizNews Service
Mumbai, 6 August, 2026: The Monetary Policy Committee (MPC) held its 62nd meeting from August 3 to 5, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent. Consequently, the standing deposit facility (SDF) rate remains at 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50 per cent. The MPC also decided to continue with the neutral stance.
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Ranen Banerjee, Partner and Leader, Economic Advisory, PwC India, explains:
“The pause by the MPC was as per expectations. The volatility in the trade and energy flows makes it very difficult to make a move on the policy rates as we have almost daily swings, especially on the Middle East front, that has a great bearing for the Indian economy. The monsoon related uncertainty on the agricultural front has weighed on the decision but there is optimism of the inflation abating in Q4. A positive note is on the growth front that RBI expects to hold and possibly improve. Since, there is no over hearing of the economy and the inflation is still within its targeted band, the future MPC meeting decisions will be more influenced by the movement of the US yields, developments in the Middle East and capital flows.”
