RBI Monetary Policy Meeting June 2026 LIVE: RBI keeps repo rate unchanged, revises GDP growth forecast to 6.6% from 6.9%

RBI Policy Meeting Today Live Updates:After the three-day meeting held by the Reserve Bank of India’s Monetary Policy Committee, the central bank decided to keep its repo rate unchanged at 5.25% and stance neutral. The cautious move was widely expected amid the Iran war-related energy supply disruptions and falling rupee. RBI also revised the real GDP growth to 6.6% from the previous 6.9%.

RBI Governor Sanjay Malhotra said that the CPI inflation remains below the target despite global shock as the pass-through to domestic prices has been limited. “While the baseline projections point towards headline inflation forming up towards the upper tolerance level in Q3 this year. The impact of the supply shock is expected to wane Q4 onwards. The underlying inflation pressures continue to remain benign at this juncture,” he said.

The MPC’s decisions comes amid volatile global conditions driven by ongoing tensions in West Asia and volatile global crude oil and gas prices After falling by more than 10% against the US dollar over the last year, the RBI thinks the rupee is now undervalued, with Governor Sanjay Malhotra saying as much in an interview last week, pointing at the currency’s Real Effective Exchange Rate, which fell to 90.96 in April – the lowest since September 2013.

The real estate sector has said that keeping the repo rate unchanged will bring stability in the market and help builders plan in the long run. Shekhar G Patel, president of CREDAI, said: "RBI's decision to keep the repo rate unchanged at 5.25%, while maintaining a neutral policy stance and retaining the CRR at 3%, indicates a calibrated response amidst the current global economic environment. With geopolitical tensions, inflationary concerns, and currency volatility continuing to influence markets globally, policy continuity will bode well for the real estate sector and help sustain overall market stability... However, continued policy support will remain important to address the demand-supply gap in affordable housing.

"The growth prospects of the sector have remained stable and disciplined, supported by infrastructure expansion and increasing preference for organised developments across major cities. Given the neutral stance, the announcement is expected to further strengthen investor, end-user, and homebuyer confidence," he added.

"For the real estate sector, policy consistency is important as it helps sustain buyer confidence and supports long-term decision-making, particularly among end-users... it allows the industry to focus on creating long-term value through planning, quality development and sustainable growth," said Amrita Gupta, director, Manglam Group.

Managing Director, Omaxe Ltd, said: "For the real estate sector, this is a positive development. Stable borrowing costs help sustain buyer sentiment and support decision-making for both homebuyers and investors. A steady interest rate environment will help maintain this momentum in the months ahead."

Fintech lenders have hailed the RBI's decision to keep repo rate unchanged. Amit Prakash Singh, co-founder & CBO of fintech loan aggregator Urban Money, said: “For the housing finance sector, this continuity is a positive signal as it helps sustain borrower confidence and supports steady credit flow in the market.'

Abhimanyu Munjal, MD & CEO of Hero FinCorp, said: "India remains well-positioned, supported by strong domestic demand and improving economic fundamentals. For NBFCs, a stable interest rate environment provides greater clarity for planning and lending responsibly across retail, self-employed, and MSME customers. As more Indians gain access to formal credit, it is important to balance growth with prudent risk management and financial inclusion."

Vijay Kumar Singh, CFO of instant loan provider Lendingplate, said that the RBI's move reflected a prudent approach amid the evolving economic and inflationary conditions. Explaining the move's impact on lenders, he said: "A stable interest rate environment provides greater certainty for lenders and borrowers, enabling better financial planning and credit management. For the digital lending ecosystem, policy stability supports sustained credit growth, particularly among underserved consumer segments seeking convenient access to formal credit."

Echoing him, business head of BharatLoan Shakti Shekhawat said: "The RBI's decision provides stability and predictability for both borrowers and lenders. A steady rate environment supports informed borrowing decisions and healthy credit growth."

RBI has projected the CPI inflation to be at 5.1% for this year, about 50 basis points more than earlier projected.

RBI Sanjay Malhotra further said that the central bank had decided to revise the real GDP growth forecast from 6.6% to 6.25%. "CPI inflation remains below the target despite global shock as the pass-through to domestic prices has been limited. While the baseline projections point towards headline inflation forming up towards the upper tolerance level in Q3 this year. The impact of the supply shock is expected to wane Q4 onwards. The underlying inflation pressures continue to remain benign at this juncture. "However, generalisation of inflation through second round effects on expectations and wages is a distinct possibility, warranting a close vigil. The outlook also remains clouded due to the sub-normal southwest monsoon forecast and El Nino risks."

Governor Malhotra says that India's economy is dealing with global turbulence with much better fundamentals than in previous similar episodes.

"Indian economy entered this current episode of global turbulence with much better fundamentals than in previous similar episodes. We remain confident to withstand these shocks with minimum pain," Governor Sanjay Malhotra says. He further said that over the past few months, the global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment.

#WATCH| RBI Governor Sanjay Malhotra says, "Indian economy entered this current episode of global turbulence with much better fundamentals than in previous similar episodes. We remain confident to withstand these shocks with minimum pain.""Over the past few months, the global…pic.twitter.com/cc6H0uwPYD

"We remain confident to withstand shocks with minimum pain amid heightened global uncertainties, says RBI Governor Sanjay Malhotra. CPI inflation remains below target with upwards bias," says RBI Governor.

Governor Sanjay Malhotra says RBI MPC has decided to keep the repo rate unchanged at 5.25% and stance 'neutral'. "After a detailed assessment of the evolving macro-economic and financial developments and outlook, the MPC voted unanimously to keep the policy repo rate under the lap unchanged at 5.25 per cent," he said

Governor Sanjay Malhotra said: "Global economic outlook remains clouded due to West Asia war." He also said energy prices are high which have made markets challenging.

Here's what the RBI decided on the repo rates the last five times:

February 2025:25 bps rate cut, neutral stance

April 2025:25 bps rate cut, neutral stance

June 2025:50 bps rate cut, neutral stance

December 2025:25 bps rate cut, neutral stance

February 2026:Repo rate unchanged at 5.25%, stance ‘neutral’

In a statement Kotak Mahindra said it expected an upward revision in inflation projections (closer to 4.80% - 4.90% for FY27) and marginal downward revision in GDP growth (possibly to 6.7% - 6.8%)

It said that it expects the RBI to maintain the repo rate at 5.25%, with only a slim possibility of a hike, while keeping its policy stance neutral.

The rupee is unlikely to see any massive change at opening on Friday, with market focused on the Reserve Bank of India's policy decision due at 10 AM, reportedReuters. The currency is expected to open near Thursday's close of 95.83, marking a third straight session of losses.

While around 80% of economists surveyed by Reuters expect the RBI to leave interest rates unchanged, currency traders see the outcome as more evenly balanced. A rate hike would likely trigger a stronger immediate market reaction than a status quo decision, traders said.

Investors will also closely watch for measures aimed at attracting dollar inflows, which are seen as crucial for supporting the rupee. The rupee also faces pressure from rising oil prices, which could widen the current account deficit. Regional cues remained negative, with most Asian currencies weaker amid lingering concerns over Middle East tensions and stalled U.S.-Iran talks, the news agency reported.

Foreign investors are increasingly favouring short-term Indian government securities as rising yields and expectations of a shift in the interest rate cycle create attractive investment opportunities, reported news agency PTI. Concerns that the Iran conflict could fuel inflation have further influenced these preferences.

According to clearing house data, bonds with maturities of less than five years accounted for more than two-thirds of the 10 most-purchased government securities by foreign investors between March and May. During January and February, such bonds represented less than half of comparable purchases, the news agency reported.

Overall, overseas investors bought Indian bonds worth Rs 221 billion during the first two months of the year. In March, however, they turned net sellers, offloading a record Rs 177 billion worth of bonds before returning as buyers in April and May.

The RBI MPC meeting began on June three and the decisions will be announced today. The monetary policy decisions will be announced by RBI Governor Sanjay Malhotra at 10 AM today. This will be followed by a press conference by Malhotra at noon. The announcement and the press conference will be streamed live on the RBI’s official YouTube channel. You can also get the Live updates on the MPC's decisions onThe Indian Express.

The June RBI MPC meeting comes at a time when the global economy is facing a major energy crisis due to the Iran war and the blockade of the Strait of Hormuz. The impact has been felt in India as well, with petrol, diesel, CNG, and LPG prices getting staggered hikes. This has added further pressure on the nation's inflation forecast. The Rupee has also lost ground, closing at 95.83 per USD on Thursday. Experts are hoping for policies that would strengthen the Rupee.

The RBI's repo rate is the interest rate at which commercial banks borrow short-term funds from the central bank by pledging government securities. It is one of the RBI's most important monetary policy tools for managing inflation, economic growth, and liquidity in the financial system. When the RBI lowers the repo rate, borrowing becomes cheaper for banks.This often leads to lower interest rates on home loans, vehicle loans, and business loans, encouraging spending and investment. On the other hand, when the RBI raises the repo rate, borrowing costs increase, helping to curb inflation by reducing demand in the economy.The repo rate is important because it influences the overall cost of credit, affects consumer spending and business activity, and helps maintain price stability. Changes in the repo rate can also impact savings rates, stock markets, and economic growth. As a result, investors, businesses, borrowers, and policymakers closely monitor RBI repo rate decisions to gauge the direction of the economy.

The Reserve Bank of India (RBI) will announce its monetary policy decision today, June 5, 2026, after three days of deliberations by the Monetary Policy Committee (MPC). RBI Governor Sanjay Malhotra is chairing the panel, which holds the meeting to decide on key monetary policies such as repo rate and the RBI's stance in the prevailing circumstances every two months. The meeting lasts three days. On the third day, the decisions are announced and the Governor later replies to questions at a press conference.

The MPC meeting today is