EconomyThursday, 11 June 2026·The Hindu - Economy
RBI MPC keeps repo rate at 5.25% and trims FY27 growth to 6.6%
On 5 June 2026, the RBI MPC left the repo rate unchanged at 5.25% and revised FY27 growth to 6.6% while raising inflation projection to 5.1%.
Key highlights
Direct fact
On June 5, 2026, the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25% and revised the FY27 real GDP growth forecast to 6.6% while raising inflation projection to 5.1%.
Key specifics
- Repo rate: 5.25% under the LAF, decided unanimously by the MPC on June 5, 2026.
- SDF rate remained at 5%, while the MSF rate and Bank Rate stayed at 5.50%.
- FY27 real GDP growth was cut from 6.9% to 6.6%, with quarterly projections of Q1 6.6%, Q2 6.3%, Q3 6.5% and Q4 6.8%.
- Inflation projection for FY27 was raised by 50 basis points to 5.1%, with headline inflation seen firming up in Q3:2026-27.
- RBI Governor Sanjay Malhotra said the MPC retained a neutral stance and would remain data-dependent amid monsoon and El Niño risks.
Exam lens
Question type: RBI policy and macroeconomy. Key facts: MPC, repo rate 5.25%, SDF 5%, MSF 5.50%, FY27 GDP 6.6%, inflation 5.1%. TNPSC may ask the current policy rate, the stance, or the revised growth-inflation numbers.