Reserve Bank of India holds key repo rate at 5.25%, maintains neutral stance, revises inflation and growth forecasts.

The Reserve Bank of India (RBI) unanimously decided to keep its key repo rate unchanged at 5.25% and maintain a neutral policy stance during its August 2026 meeting. The central bank slightly lowered its inflation forecast for FY2026/27 to 5.0% from 5.1% and raised its growth outlook to 6.7% from 6.6%. The RBI noted that inflationary pressures have not broadened, with core inflation remaining benign at 4.3%.