Repo rate unchanged. Low EMI. The Reserve Bank of India has kept the repo rate unchanged in its monetary policy for June 2026. RBI Governor Sanjay Malhotra has kept the repo rate unchanged for the third consecutive time. The repo rate remained unchanged at 5.25%. The domestic growth rate (GDP) estimate has declined to 6.6 percent. Sanjay Malhotra has informed us that the recession is under control. The RBI last cut interest rates in December 2025, reducing it from 5.5 percent to 5.25 percent.
Along with keeping the repo rate unchanged in the RBI MPC meeting, the Reserve Bank also kept other key interest rates unchanged. RBI Governor Sanjay Malhotra said that the Standing Deposit Facility (SDF) rate will remain at 5%. The Marginal Standing Facility (MSF) rate and the Bank Rate are also unchanged at 5.5%. This clearly indicates that the central bank has not made any changes to other key monetary policy rates. Not only that, but inflation will increase in the country. The RBI Governor has cited war and El Niño as the reasons.
RBI Governor Sanjay Malhotra said that there has been considerable volatility in the global economy over the past few months. Key trade routes and supply chains have been disrupted, market volatility has increased, and companies have become more cautious about their operations. Amidst this global volatility, the fundamentals of the Indian economy are much stronger and better than last time. We are confident that we are fully capable of dealing with this external shock with minimal losses.
Inflation forecast— RBI Governor Sanjay Malhotra said after the bi-monthly policy review meeting that the CPI inflation rate for the financial year 2026-27 will be 5.1%. The rate-setting committee has decided to maintain the core inflation forecast at 4.7%. Inflationary pressures are currently low. Due to the ongoing unrest in the Middle East, the RBI has lowered its GDP growth forecast. The previous estimate for the financial year has been revised down from 6.9 percent. The central bank now expects GDP growth to be 6.6 per cent in the first quarter of FY27, 6.3 per cent in the second quarter, 6.5 per cent in the third quarter and 6.8 per cent in the fourth quarter.
