The Reserve Bank of India Monetary Policy Committee on 5 June 2026 unanimously kept the policy repo rate unchanged at 5.25 per cent with the standing deposit facility rate at 5.00 per cent and the marginal standing facility rate and Bank Rate at 5.50 per cent while maintaining a neutral stance. Announced by Governor Sanjay Malhotra in Mumbai this is the third consecutive hold after the central bank had earlier cut rates by a cumulative 125 basis points between February and December 2025. The MPC justified the pause amid significant external pressures including the Iran West Asia driven energy shock with crude oil prices spiking sharply the rupee touching record lows near 97 per US dollar in May 2026 and foreign portfolio investor outflows of about Rupees 2.47 lakh crore on a year to date basis. The RBI revised its real GDP growth projection for FY 2026 27 downward to 6.6 per cent from the earlier estimate of around 6.9 per cent while raising the Consumer Price Index inflation forecast to about 5.1 per cent citing upside risks from supply disruptions and elevated fuel costs. Governor Malhotra emphasised the Indian economy strong and resilient fundamentals stating that the central bank would adopt a data dependent approach maintain vigilance on inflation closely monitor liquidity and rupee stability and rely on domestic consumption services agriculture and Micro Small and Medium Enterprises to withstand global shocks. The decision aligned with near unanimous market expectations and reaffirmed the RBI focus on balancing growth support with inflation management at a time when global central banks remain cautious about premature easing.