RBI expected to keep repo rate unchanged as inflation concerns persist

The Reserve Bank of India’s Monetary Policy Committee met from August 3‑5, 2026, with Governor Sanjay Malhotra slated to announce the repo rate decision on August 5. Analysts, including SBI Research and brokerage Nuvama, anticipate the rate will remain at 5.25%, citing steady but high consumer‑price inflation around 5% and external uncertainties despite robust GDP growth forecasts of over 7% for the April‑June quarter.

A unchanged repo rate means borrowing costs for home and auto loans are likely to stay the same, leaving EMIs for millions of borrowers unchanged. The RBI is expected to adopt a “wait‑and‑watch” stance, focusing on liquidity management while capital inflows have helped bolster foreign‑exchange reserves.

SBI Research also highlighted improvements in domestic conditions such as stronger monsoon rains and higher reservoir levels, which could support agricultural output and overall economic momentum.