RBI Repo Rate Decision 2026: The Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 5.25 per cent, in line with market expectations, as the Monetary Policy Committee (MPC) opted to maintain
a cautious approach amid evolving inflationary pressures and global economic uncertainties.
Announcing the bi-monthly monetary policy, RBI Governor Sanjay Malhotra said the six-member MPC unanimously decided to retain the policy repo rate at 5.25 per cent. The central bank also left its policy stance unchanged at “neutral”, indicating that future decisions will continue to be guided by incoming economic data.
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The RBI has now kept the repo rate unchanged at 5.25 per cent since reducing it by 25 basis points in December 2025 from 5.50 per cent. The benchmark lending rate has remained unchanged through the February 2026, April 2026, June 2026 and August 2026 monetary policy reviews.
Read more: RBI MPC Decision: Will Your Credit Card Interest Rate Change? What Borrowers Should Know
Why Did RBI Keep Rates Unchanged?
The RBI’s decision comes at a time when retail inflation edged higher but remains within the central bank’s mandated tolerance band of 2-6 per cent. Policymakers are also navigating heightened global uncertainty, including geopolitical tensions, volatile crude oil prices and external financial risks, while seeking to preserve domestic economic growth. By retaining the repo rate, the RBI signalled that it prefers to closely monitor evolving inflation and growth trends before making any changes to interest rates.
What Does It Mean For Borrowers?
With the repo rate unchanged, borrowers with floating-rate home, auto and personal loans linked to the repo rate are unlikely to see any immediate change in their EMIs. Similarly, deposit rates are expected to remain broadly stable, although individual banks may revise lending or deposit rates depending on their liquidity position, funding costs and business requirements.
Read more: Repo Rate, Reverse Repo, CRR, SLR: RBI Terms Everyone Hears During Monetary Policy, Explained
What Happened In RBI’s Previous Policy?
At its June monetary policy review, the MPC had also left the repo rate unchanged at 5.25 per cent and retained its “neutral” stance. Alongside the policy rate, the RBI kept the Standing Deposit Facility (SDF) rate at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate remained unchanged at 5.5 per cent.
