MUMBAI, August 5 — The Reserve Bank of India's Monetary Policy Committee (MPC) voted unanimously on Wednesday to keep the benchmark policy repo rate unchanged at 5.25 percent, maintaining a neutral policy stance.
RBI Governor Shaktikanta Das announced that the decision aims to keep inflation within the target band while supporting economic growth. The central bank also revised India's GDP growth projection for the financial year 2026–27 upward to 6.7 percent, reflecting strong domestic consumption and industrial activity.
The committee noted that while food inflation remains a concern due to monsoon fluctuations, core inflation has stabilized within manageable limits.
Monetary policy decisions and economic terms are heavily featured in bank, insurance, and civil services exams. Candidates should note the benchmark repo rate (5.25%), the GDP growth projection (6.7%), and that the repo rate is the interest rate at which RBI lends money to commercial banks.