RBI Maintains Repo Rate at 6.5% for 8th Consecutive Review in June 2026
The RBI Monetary Policy Committee (MPC) voted 5:1 to keep the policy repo rate unchanged at 6.50% to ensure inflation aligns with the 4% target while supporting economic growth.
The Policy Decision
In its bi-monthly review announced on June 8, 2026, the six-member Monetary Policy Committee (MPC) of the Reserve Bank of India, headed by Governor Shaktikanta Das, voted 5:1 to retain the benchmark repo rate at 6.50%. This marks the eighth consecutive time the rate has remained unchanged since February 2023.
Background & Context
The central bank has been navigating a complex macroeconomic landscape. While core inflation has dropped to historic lows (around 3.1%), persistent food inflation???driven by adverse weather events affecting vegetable and pulse yields???has kept headline CPI inflation sticky near 4.5%. The RBI's mandate is to maintain consumer price index (CPI) inflation at 4% with a band of +/- 2%.
Key Statistics & Projections
- Repo Rate: 6.50%
- Standing Deposit Facility (SDF): 6.25%
- Marginal Standing Facility (MSF) & Bank Rate: 6.75%
- FY27 GDP Growth Projection: 7.2% (Q1: 7.3%, Q2: 7.2%, Q3: 7.3%, Q4: 7.2%)
- FY27 CPI Inflation Projection: 4.5%
Static GK & Related Facts
- About MPC: Constituted under Section 45ZB of the amended RBI Act, 1934. It has 6 members (3 external, 3 from RBI). The RBI Governor is the ex-officio Chairperson.
- Repo Rate Definition: The rate at which the RBI lends short-term money to commercial banks against approved securities.
- Accommodative Stance: The MPC retained its stance of "withdrawal of accommodation", signaling that rate cuts are not imminent until food inflation sustainably cools down.
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