RBI Likely to Hold Repo Rate Steady in August Despite Inflation Concerns

The Reserve Bank of India is widely expected to keep the benchmark repo rate unchanged at its August monetary policy review, according to a poll of 10 economists and treasury heads. The three-day MPC meeting is scheduled from August 3 to August 5.

Economists predict the central bank will retain its 'Neutral' policy stance while adopting a hawkish tone, remaining cautious due to elevated crude oil prices, geopolitical tensions and uneven monsoon patterns. RBI Governor Sanjay Malhotra has emphasized that inflation remains the central bank's top priority.

While no immediate rate change is expected in August, several economists believe the RBI could raise interest rates later in FY27 if inflation pressures persist. The central bank has already cut the repo rate by 1.25 percentage points cumulatively since last year to support economic growth.