RBI MPC keeps repo rate unchanged at 5.25% in August policy, maintains neutral stance
Economic Times 1 hr ago·5 Aug 2026, 4:34 am
The Reserve Bank of India (RBI) has kept its key lending rate, the repo rate, unchanged at 5.25% for the eighth consecutive time. The central bank also decided to maintain its neutral stance on monetary policy, suggesting it is not actively trying to stimulate or cool down the economy at this moment. This decision comes as the RBI balances the need to support growth against the risk of rising inflation.
For investors, this outcome is largely viewed as a status quo scenario. It implies that borrowing costs for banks and businesses will remain stable for now, which is generally supportive for corporate earnings. The decision to hold rates steady suggests the RBI is confident that inflation is under control without needing to tighten policy further.
Moving forward, investors should watch for upcoming data on inflation and industrial production. These indicators will be crucial in determining if the RBI feels comfortable enough to start cutting rates in the future. Any shift in these economic signals could influence market sentiment in the coming months.
Excerpt from Economic Times
Updated On Aug 5, 2026 at 10:12 AM IST The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday decided to keep the repo rate unchanged at 5.25 per cent. The committee, which met on August 3, 4 and 5, voted unanimously in favour of the rate pause. RBI Governor Sanjay Malhotra also announced that…Read the original at Economic Times
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