India's Central Bank Begins Monetary Policy Meeting, Expected to Hold Rates Steady

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) commenced its three-day meeting on Monday, August 3, 2026. Economists widely anticipate the central bank will maintain the benchmark repo rate at 5.25%, extending a pause from the previous review. This decision comes despite a recent acceleration in retail inflation to 4.38% in June, which remains within the RBI's 2%-6% tolerance band. The broader focus will be on the RBI's commentary regarding inflation, liquidity, crude oil prices, and external risks amidst heightened geopolitical tensions.