Analysts forecast the Reserve Bank of India will maintain its repo rate as inflation stays within the 2-6% target range.
The Reserve Bank of India is poised to keep its benchmark repurchase rate unchanged at 5.25% during its bi-monthly policy decision on August 5. Analysts cite inflation risks, including higher global commodity prices and a weaker monsoon, but note June’s Consumer Price Index rose 4.4% year-over-year, within the RBI’s 2-6% target band.
The RBI has held rates steady since December 2025, when it cut the repo rate by 25 basis points. A Reuters poll shows 68 of 72 economists expect no change, aligning with the central bank’s cautious stance amid geopolitical uncertainty and economic volatility.
Markets anticipate the Standing Deposit Facility and Marginal Standing Facility rates will remain at 5% and 5.5%, respectively, reinforcing policy continuity.