RBI Keeps Repo Rate Unchanged At 5.25Percent In August Policy

The Reserve Bank of India's Monetary Policy Committee unanimously decided to keep the policy repo rate unchanged at 5.25% for the fifth consecutive meeting. Maintaining a neutral policy stance during its August 3-5 meeting, the central bank aligned fully with widespread market expectations. Governor-led deliberations emphasized ongoing vigilance regarding domestic food and fuel price pressures while balancing growth momentum.

The central bank revised its FY27 real GDP growth forecast upwards to 6.7% from the previous 6.6% estimate. Simultaneously, the RBI lowered its FY27 Consumer Price Index inflation projection to 5% from 5.1%. Quarterly inflation projections were adjusted with Q1 at 4.1% and Q2 marked down to 4.7%, while core inflation is projected to average 4.3% across the fiscal year.

Indian equity markets responded positively to the announcement, with the Sensex closing up 152 points at 78,581 and the Nifty 50 settling at 24,624.65. Rate-sensitive sectors outperformed significantly as the Nifty Auto index surged 1.5% to a record high of 29,489.2. The Nifty Realty index gained 2.6%, aided by sliding global crude oil prices which dipped below $80 per barrel.