✎ MPC maintained repo rate at 5.25% with neutral stance, citing domestic resilience amid global volatility.
Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) held its 62nd meeting from August 3 to 5, 2026, chaired by Governor Sanjay Malhotra. The MPC unanimously decided to maintain the repo rate at 5.25%, the SDF rate at 5.00%, and the MSF/Bank Rate at 5.50%, while retaining a neutral stance. This decision reflects the MPC’s assessment of evolving macroeconomic conditions, including global market volatility, persistent inflation concerns, and shifting policy expectations. For banking aspirants preparing for exams like Bank PO, IBPS, SBI, RBI Grade B, and SSC, this highlights the RBI’s cautious approach to balancing growth and inflation amid uncertain global and domestic factors.
The MPC projected India’s real GDP growth for 2026-27 at 6.7%, with inflation (CPI) expected to average 5.0%. Key risks include El Niño’s impact on agriculture, volatile oil prices, and geopolitical tensions affecting supply chains. The RBI’s emphasis on supply-side measures, resilient domestic demand, and government initiatives to support rural and urban sectors underscores its policy priorities. For SSC and RBI Grade B candidates, this reinforces the importance of understanding monetary policy tools, inflation dynamics, and their interplay with economic growth—critical topics for both prelims and mains examinations.
Source: RBI
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