RBI Monetary Policy LIVE: MPC To Ensure Liquidity, FY27 GDP Growth Estimate Hiked To 6.7%

RBI Monetary Policy Live Updates: Sandeep Agarwal, Executive Director – Finance & Group CFO, Elan Group, said on the MPC verdict, “The RBI’s decision to maintain the repo rate at 5.25% provides stability and greater visibility for long-term investment decisions amid evolving global and economic conditions.''

''For the real estate sector, a stable rate environment supports buyer confidence and strengthens the outlook for projects backed by strong fundamentals, strategic locations and credible execution. This will continue to support sustainable growth across all housing segments,'' said Agarwal.

RBI Governor Sanjay Malhotra announced draft guidelines for the licensing of urban co-operative banks and plans to harmonise the regulatory framework governing interest rates on advances. pic.twitter.com/kuayFsqkZQ

— NDTV Profit News (@NDTVProfit) August 5, 2026

 

RBI Monetary Policy Live Updates: Draft guidelines for the licensing of urban co-operative bank 

RBI Monetary Policy Live Updates: Through conduct of two-way operations, RBI to ensure sufficient liquidity. Gross FDI inflows were buoyant at $30.7 bILLION in Q1. Net FDI inflows increased during Q1. FPI to India has seen a turnaround in June and July. FPI inflows driven primarily by bond market inflows. Balance of payments expected to register healthy surplus. Forex reserves continue to be adequate with import cover of 10 months. 

RBI to continue with policy of exchange rate being determined by market forces. RBI to continue to check excessive volatility in forex market. RBI to issue draft guidelines for licensing of urban co-operative banks. RBI ATo harmonise, standardise regulatory framework on interest rates on advances, said RBI Guv.

RBI Monetary Policy Live Updates: CPI inflation in FY27seen at 5%, 10 bps lower than earlier forecast. Q2 CPI inflation seen at 4.7%. Q3 CPI inflation seen at 5.9%. Q4 CPI inflation seen at 5.5%. Q1 FY28 CPI inflation seen at 5.3%. Core inflation in FY27 seen at 4.3%. 

Core inflation barring precious metals seen lower than 4.3% in FY27. G-Sec yields buoyed by measures by government, RBI eased. Transmission in the credit market moderated slightly in May, June. Credit growth continues to remain robust, broad-based across various sectors

RBI Monetary Policy Live Updates: MPC on GDP growth estimates-

• Q1 GDP growth seen at 7%
• Q2 GDP growth seen at 6.4%
• Q3 GDP growth seen at 6.5%
• Q4 GDP growth seen at 6.8%

Guv Malhotra said risks to growth are evenly balanced. Global energy price volatility blurs near term visibility. Proactive supply management, adequate stock of foodgrain to provide comfort.

RBI Monetary Policy Live Updates: RBI Guv Malhotra speaks

• Government's initiatives expected to mitigate impact of deficient rainfall
• Growing diversification of global supply chains should mitigate impact on manufacturing
• Supported allied sector activity could mitigate impact of monsoon on rural economy
• Strong capacity utilisation, robust credit flow, government thrust in infra to sustain investment activity
• Renewed tensions in West Asia, volatility in financial markets, weather-related shocks pose downside risk to growth

RBI Governor Sanjay Malhotra says India's economy performed better than expected in Q1.

However, renewed West Asia tensions, monsoon risks, and global volatility remain key concerns. #RBIPolicy pic.twitter.com/tkoacjbpyI

— NDTV Profit News (@NDTVProfit) August 5, 2026

 RBI Monetary Policy Live Updates: RBI Governor Sanjay Malhotra highlighted the GDP growth and resilience across sectors in Q1, despite global headwinds, in the policy statement.

RBI Monetary Policy Live Updates: MPC underscored that it will maintain close vigil. Supply-side pressures caused by West Asia crisis eased somewhat since June. The MPC aw normalisation of key input supply since June. Re-escalation of conflict led to renewed uncertainty about supply chain AND resilience in domestic high frequency indicators. 

Early results for corporates in Q1 exhibit resilience. Private consumption continues to be driven by buoyant discretionary spending. Merchandise exports rebounded with double-digit growth. Overall the Indian economy performed better than expected in Q1. Prospects for Agriculture are clouded due to progress of South West Monsoon, according to Guv Malhotra.

RBI Monetary Policy Live Updates: The central bank's decision to keep rates on hold comes even as peers including Indonesia, Philippines and others have raised borrowing costs to counter higher energy prices and currency pressures brought on by the Iran war. Instead it announced a series of steps at the previous meeting to boost capital inflows and support the rupee.

RBI Monetary Policy Live Updates: The headline inflation is expected to rise further in the near term. Headline inflation likely to peak in Q3 and moderate after Q3. The economic growth continues to be supported by resilient domestic demand. India's position as the fastest growing major economy has been reinforced, according to the MPC members.

Growth, albeit resilient, is expected to be lower in FY27. Core inflation continues to remain moderate, expected to decline after peaking in Q3. Need for greater clarity to emerge, especially on inflation. Any policy action must consider recalibration of policy rate in light of growth dynamics, said Guv Malhotra in his MPC address.

RBI Monetary Policy Live Updates: The MPC decided to unanimously keep repo rate at 5.25%. MPC also decided to continue with the 'neutral stance' on the monetary policy, said Guv Malhotra. The Standing Deposit Facility (SDF) rate remains unchanged at 5%, while the Marginal Standing Facility (MSF) rate and the bank rate stands at 5.5%.

MPC noted that headline inflation has edged up above target as expected. The realised inflation for Q1 remains lower than expected. The higher inflation is mostly on account of fuel, food prices. There is little sign of generalisation of price pressures so far, said Guv Malhotra.

RBI Monetary Policy Live Updates: RBI Governor Sanjay Malhotra began the MPC address saying that the West Asia conflict continues to challenge the global economy. Trade uncertainty lingers as US imposed fresh tariffs. Global economic environment has become challenging. Some central banks have tightened policy, others have remained vigilant, he said.

Ahead of the RBI policy, markets expect a pause on rates and stance. But the focus is on the commentary.

Upasana Chachra of Morgan Stanley outlines the key signals to watch on growth, inflation, liquidity, and the future policy path.@alexandermats @MorganStanley pic.twitter.com/pcz0vndgGF

— NDTV Profit News (@NDTVProfit) August 5, 2026

 

 RBI Monetary Policy Live Updates: Upasana Chachra of Morgan Stanley outlines the key signals to watch on growth, inflation, liquidity, and the future policy path.

RBI Monetary Policy Live Updates: India's retail inflation rate breached the RBI's target for the first time in 17 months, accelerating to 4.38% in June. Signs are emerging that price pressures may prove more persistent. READ MORE HERE

The country's largest consumer companies are preparing a second straight quarter of price increases on products ranging from toothpaste to tires and paint, adding to signs that higher input costs are being passed on to consumers.

The RBI targets inflation at the 4% midpoint of the tolerance band, and Malhotra has said policymakers would respond only if price pressures become more broad-based rather than driven by temporary supply shocks. 

"We think the best thing to do amid this volatility is nothing," Barclays Plc economist Aastha Gudwani wrote in a note. Policymakers face an environment that is "no less challenging" than in June, supporting the case for the MPC to remain on pause, she said.

RBI Monetary Policy Live Updates: The RBI's repo rate currently stands at 5.25%, after the central bank reduced it by 100 basis points in 2026 to support economic growth. The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks, and any change in it influences borrowing costs, home loan EMIs, deposit rates and overall liquidity in the economy.

RBI Monetary Policy Live Updates: The RBI will stream the monetary policy announcement and Governor Sanjay Malhotra's post-policy address live on its official website and social media platforms. Viewers can also follow real-time updates, analysis and key takeaways on NDTV Profit's digital platforms and YouTube channel. READ MORE HERE

RBI Monetary Policy Live Updates: Key Indicators To Watch

• Repo rate decision
• Monetary policy stance
• Inflation forecast
• GDP growth outlook
• Governor Sanjay Malhotra's commentary on global risks and liquidity

RBI Monetary Policy Live Updates: The RBI's three-day Monetary Policy Committee meeting is scheduled from Aug. 3 to Aug. 5. Governor Sanjay Malhotra will announce the policy decision and address the media at around 10 a.m. IST on Aug. 5.

RBI Monetary Policy Live Updates: The central bank's six-member repo-rate panel MPC, headed by Governor Sanjay Malhotra, is expected to leave the repurchase rate unchanged at 5.25%, according to all but one of 30 economists surveyed by Bloomberg. Policymakers are also likely to retain a neutral stance as inflation remains well within the RBI's 2%-6% tolerance band. RBI Governor Malhotra will unveil the monetary policy verdict at 10:00 am. The MPC panel will also conduct a post-policy press conference at 12 noon.

Stay tuned to NDTV Profit for all back-to-back live updates of RBI Monetary Policy Review announcements on Wednesday, Aug. 5, 2026.

RBI Monetary Policy Live Updates: Hello and welcome to NDTV Profit's live coverage of Reserve Bank of India's monetary policy committee decision on Aug. 5, 2026! Stay tuned to our live blog as we bring you all major updates on RBI Governor Sanjay Malhotra-led MPC verdict on the benchmark repo rate, inflation-cum economic growth projections, and other related policy announcements. The RBI is expected to keep interest rates unchanged on Wednesday as policymakers assess whether higher energy costs from the renewed Middle East conflict spill over into broader inflation before raising borrowing costs.