RBI MPC 2026 highlights: Repo rate hold, GDP cut and inflation rise

By Akanksha
June 08, 2026

1. Repo Rate Unchanged

MPC unanimously voted to keep the repo rate unchanged at 5.25% and retained a neutral stance, choosing to wait for greater clarity on inflation risks.

2. GDP Growth Cut

RBI lowered its FY27 GDP growth forecast to 6.6% from 6.9%, citing global uncertainties, supply disruptions and rising cost pressures.

3. Inflation Raised

RBI increased its FY27 CPI inflation projection to 5.1% from 4.6%, reflecting higher energy prices and emerging supply-side pressures.

4. Core Inflation Seen at 4.7%

Core inflation is projected at 4.7% for FY27, with the RBI noting that underlying price pressures remain broadly benign at present.

5. Global Risks

Governor Sanjay Malhotra said the global outlook remains clouded by geopolitical tensions, market volatility and cautious business sentiment.

6. Tax Relief

Govt exempted FIIs from capital gains tax on specified government securities and introduced new tax-relief categories under the Income-Tax (Amendment) Ordinance, 2026.

7. FAR Expansion

RBI added 15-year, 30-year and 40-year government bonds to the Fully Accessible Route, allowing foreign investors unrestricted access to a wider pool of long-term G-Secs.

8. Energy Impact

Elevated energy prices and global supply constraints are hurting economic activity and adding to inflationary pressures across sectors.

9. Domestic Resilience

India’s domestic economy has remained largely steady, supported by manufacturing, services activity and resilient private consumption.

10. Export Challenges

Weak global demand and high logistics costs continue to pose headwinds for merchandise exports despite strong growth recorded in April.

11. Monsoon Risk

A sub-normal southwest monsoon and El Niño threat could affect agricultural output and rural demand, adding uncertainty to the outlook.

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