RBI MPC Meeting June 2026 Highlights: Repo Rate Unchanged at 5.25%, GDP Growth Forecast Revised to 6.9%

RBI MPC Meeting 2026 Updates: The RBI Governor Sanjay Malhotra-led Monetary Policy Committee held its second bi-monthly policy meeting for FY27 from 3 June to 5 June 2026. While maintaining a ‘neutral’ stance, the RBI MPC voted unanimously to keep the repo rate unchanged at 5.25 per cent and revised the GDP growth to 6.6 per cent from the previous 6.9 per cent.

“Real GDP growth for 2026-27 is projected at 6.6 per cent, with Q1 at 6.6 per cent, Q2 at 6.3 per cent, Q3 at 6.5 per cent, and Q4 at 6.8 per cent," said RBI governor Sanjay Malhotra. He further added that the volatility in global financial markets, prolonged global supply chain disruptions, and weather-related shocks continue to pose downside risks to the domestic growth outlook.

Points that sum up the Monetary Policy announcement on June 05, 2026:

•Policy Repo Rate remains unchanged at 5.25%
•Marginal Standing Facility (MSF) & Bank Rate remains at 5.50%
•Standing Deposit Facility (SDF) remains at 5.00%
•Real GDP growth for 2026-27 is projected at…

— ReserveBankOfIndia (@RBI) June 5, 2026

Amid the ongoing Middle East geopolitical tensions and rising crude oil prices, the RBI is chalking up policies to “meet the challenges while taking measures to further strengthen the macroeconomic fundamentals of the country,” said Sanjay Malhotra. The MPC also announced a series of key measures to attract more dollar inflows into the country. Check the complete details below.

RBI Monetary Policy Committee Meeting June 2026: Key Highlights You Must Know

• Policy repo rate unchanged at 5.25 per cent. Monetary policy stance continues to be 'neutral'

• Standard Deposit Facility (SDF) remains at 5.00 per cent

• Marginal Standing Facility (MSF) and Bank Rate remain at 5.50 per cent

• Consumer Price Index (CPI) inflation for FY 2026-27 projection raised to 5.1 per cent from the earlier 4.6 per cent. Quarterly projections are:
• Q1 at 4.2 per cent
• Q2 at 5.1 per cent
• Q3 at 5.9 per cent
• Q4 at 5.4 per cent 

• Real Gross Domestic Product (GDP) growth forecastfor FY 2026-27 pegged at 6.6 per cent from the 6.9 per cent projected earlier. Quarterly estimates are:
  • Q1 at 6.6 per cent
  • Q2 at 6.3 per cent
  • Q3 at 6.5 per cent
  • Q4 at 6.8 per cent

RBI Monetary Policy Committee Meeting June 2026: Key Policy Announcements

Growth: India’s manufacturing and services sectors continue to be resilient. Domestic economic activity remained largely steady.

Inflation: Core inflation is projected at 4.7 per cent for FY 2026-27. India has an adequate stock of food grains and satisfactory reservoir levels.

External Sector: Various policy initiatives are in place to strengthen the balance of payments, including: 

• Liberalisation of the ECB framework, and several others

• Easing of FDI restrictions for land-bordering countries

• Ethanol blending program

• Push for energy transition

• Opening the insurance sector to 100 per cent FDI

• Recent key agreements with major trading partners

Financial Markets: The RBI would work to ensure appropriate liquidity in the banking system to meet the productive requirements of the economy and facilitate monetary policy transmission.

Financial Stability: Key financial parameters, including capital adequacy, asset quality, liquidity, and profitability, remain healthy.

Key Measures to Attract Dollar Inflows

• Fully Accessible Route (FAR) expanded: All new issuances of 15-, 30-, and 40-year tenor G-secs have been brought under the ‘specified securities’. 

• FPI limits removed: Limits on short-term investment, concentration and individual securities on FPI investment under the General Route are being removed.

• Limits to be raised for investment by NRIs and OCIs in equity instruments traded on the stock market without SEBI registration. The same facility is being extended to individual Persons Resident Outside India (PROIs) at par with NRIs and OCIs.

• Facility of concessional forex swap to incentivise ECBs by PSUs will be provided till 30 September 2026.

• FCNR (B) deposits support: RBI to bear the full hedging cost on fresh 3-5 year FCNR (B) deposits till 30 September 2026.

• RBI to restore the time period for realisation of export proceeds to nine months.

• Tax benefits to be provided to attract foreign capital for government borrowing. 

The next RBI MPC meeting is scheduled from 3 to 5 August 2026.