RBI MPC June 2026: Repo Rate Kept Unchanged at 5.25%, RBI Retains Neutral Stance

The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, RBI Governor Sanjay Malhotra announced after the latest Monetary Policy Committee (MPC) meeting.

The central bank also retained its neutral policy stance, indicating that future decisions will depend on incoming economic data and evolving global conditions.

RBI Turns More Cautious

Governor Malhotra said the MPC has adopted a more cautious approach due to ongoing geopolitical tensions and uncertainties across global markets. Rising crude oil prices and external economic risks remain key concerns for policymakers.

Rising Oil Prices Remain a Concern

Rising crude oil prices can be a major risk for India. Higher oil import costs can increase inflation and widen the country's trade deficit.

In addition, weak capital inflows could put pressure on the Indian rupee, creating further challenges for policymakers.

Other Asian Central Banks Tightening Policy

Several Asian central banks have already started raising interest rates to support their currencies.

• Bank Indonesia recently surprised markets with a 50-basis-point rate hike.
• The central bank of the Philippines raised rates by 25 basis points in April. 

Like India, these economies are dealing with higher energy import costs and capital outflows as investors move toward safer assets.

Read More: RBI Launches FY26 Surveys on Mutual Fund Global Exposure and IT Services Exports!

Conclusion

The RBI's decision to keep the repo rate unchanged at 5.25% reflects a balanced approach between supporting economic growth and managing inflation risks. While the central bank has maintained a neutral stance for now, rising oil prices, geopolitical tensions, and currency pressures will remain key factors influencing future policy decisions.

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