The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, kept the repo rate unchanged at 5.25% on June 5, 2026, maintaining a neutral stance for the third meeting in a row. The decision cited risks from the prolonged West Asia conflict, elevated energy prices, and weather-related uncertainties. The standing deposit facility rate remains at 5%, while the marginal standing facility rate and bank rate stay at 5.5%. The RBI has already cut rates by 125 basis points since February 2025 and chose to let earlier cuts work through the economy rather than ease further amid inflation risks.
Economy
RBI keeps repo rate unchanged at 5.25% for third consecutive policy review
Key Points
- The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, kept the repo rate unchanged at 5.25% on June 5, 2026, maintaining a neutral stance for the third meeting in a row
- The decision cited risks from the prolonged West Asia conflict, elevated energy prices, and weather-related uncertainties
- The standing deposit facility rate remains at 5%, while the marginal standing facility rate and bank rate stay at 5.5%
- The RBI has already cut rates by 125 basis points since February 2025 and chose to let earlier cuts work through the economy rather than ease further amid inflation risks
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• Repo rate held at 5.25% (June 5, 2026 MPC meeting); SDF at 5%, MSF/Bank Rate at 5.5% • RBI Governor: Sanjay Malhotra; stance: 'neutral' for third straight meeting • Cumulative rate cuts since Feb 2025: 125 basis points
