RBI MPC Maintains Repo Rate Amid Inflation and Growth Uncertainties in June 2026
The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously kept the repo rate steady at 5.25% in June 2026, adopting a cautious 'wait and watch' stance amid uncertainties from the West Asia conflict and potential El Niño-induced monsoon disruptions. Members highlighted risks of inflation becoming broad-based due to higher crude oil prices, supply chain issues, and weather impacts, while noting India's strong macroeconomic fundamentals. Growth projections were revised down to 6.6% for FY27, with inflation forecast raised to 5.1%. The MPC emphasized data dependency and vigilance before any policy changes.