The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) began its three-day meeting on Monday, with Governor Sanjay Malhotra set to announce the policy decision on Aug. 5. Economists widely expect the central bank to leave the repo rate unchanged at 5.25%, according to a Bloomberg survey, despite rising global uncertainty.
The expected pause comes even as consumer prices have started to edge higher, although inflation remains within the RBI's comfort zone. The central bank has projected average inflation at 5.1% for the current financial year and is not expected to make any significant changes to that forecast.
If the RBI leaves the repo rate unchanged, home loan EMIs, lending rates and deposit rates are unlikely to see any immediate changes.
Retail inflation accelerated to 4.38% in June, crossing the RBI's 4% target for the first time in 17 months. However, it remained comfortably within the central bank's 2%-6% tolerance band, while core inflation stayed close to 4%.
The policy review also comes amid heightened geopolitical tensions in the Middle East. Disruptions around the Strait of Hormuz, a key global oil shipping route, have pushed crude prices higher, raising inflation risks for oil-importing economies like India
Bond market participants also expect government bond yields to remain supported by ample liquidity, even as higher global interest rates could limit further declines in long-term yields. The steepening may continue on attractive carry and an influx of rupee liquidity from the RBI's steps to attract overseas deposits, said Sameer Karyatt, head of trading at DBS Bank India. “The possibility of higher global interest rates driven by inflation concerns is likely to limit any significant decline in longer-tenor yields.”
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RBI MPC Meeting August 2026: Date And Time
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.
What To Watch In RBI MPC Meeting
- Repo rate decision
- Monetary policy stance
- Inflation forecast
- GDP growth outlook
- Governor Sanjay Malhotra's commentary on global risks and liquidity
When And Where To Watch RBI MPC Decision Live?
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.
What Is The Current RBI Repo Rate?
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.
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