The Reserve Bank of India kept its benchmark repo rate unchanged at 5.25% following its August 3-5 monetary policy meeting, with the six-member committee voting unanimously on the decision. One member dissented, arguing that a rate hike could become necessary later in 2026 if inflationary pressures intensify. The central bank slightly lowered its CPI inflation forecast for fiscal year 2027 to 5.0% from 5.1%, while raising its GDP growth projection to 6.7% from 6.6%. The next MPC review is scheduled for October 5-7, 2026. Oil prices linked to the ongoing conflict in West Asia and global rate dynamics remain the key variables the RBI will monitor before its next decision.
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