EconomyMonday, 15 June 2026·The Hindu - Economy
RBI MPC kept repo rate at 5.25% in June 2026; FY27 growth cut to 6.6% and inflation raised to 5.1%
The RBI MPC on June 5, 2026 kept the repo rate unchanged at 5.25% and revised FY27 growth and inflation projections.
Key highlights
Direct fact
On June 5, 2026, the RBI Monetary Policy Committee kept the policy repo rate unchanged at 5.25% and revised the FY27 real GDP growth forecast to 6.6% while raising inflation projection to 5.1%.
Key specifics
- The standing deposit facility (SDF) rate remained at 5%, while the marginal standing facility (MSF) rate and Bank Rate stayed at 5.50%.
- The MPC voted unanimously to continue with the neutral stance in June 2026.
- FY27 GDP growth was cut from 6.9% to 6.6%, with quarterly projections of 6.6%, 6.3%, 6.5% and 6.8%.
- Inflation projection for FY27 was increased by 50 basis points to 5.1%.
- Governor Sanjay Malhotra said the outlook was clouded by a sub-normal south-west monsoon forecast and El Niño risks.
Exam lens
Question type: RBI policy rates and macro projections. TNPSC one-liner: In June 2026, RBI kept repo at 5.25%, held a neutral stance, and lowered FY27 growth to 6.6% while lifting inflation to 5.1%.