RBI MPC kept repo rate at 5.25% in June 2026; FY27 growth cut to 6.6% and inflation raised to 5.1%

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%.