RBI MPC Meet LIVE: Rate Decision Announced by Governor Malhotra

RBI MPC Policy Decision LIVE: All Eyes on Governor Sanjay Malhotra’s Interest Rate Announcement

The Reserve Bank of India (Reserve Bank of India) Monetary Policy Committee (MPC) is set to announce its latest interest rate decision on Friday (June 5, 2026), with markets widely expecting the repo rate to remain unchanged at 5.25%.

The announcement will be made by RBI Governor Sanjay Malhotra after the conclusion of the three-day MPC meeting, which began on Wednesday (June 3, 2026). The decision comes at a time when global uncertainties and inflationary pressures continue to shape India’s monetary policy outlook.

MPC Meeting Amid Global Uncertainty

The ongoing MPC deliberations have taken place against a backdrop of heightened geopolitical tensions in West Asia, which have raised concerns over crude oil prices, supply chain disruptions, and imported inflation risks.

Economists believe the central bank is likely to maintain a “wait-and-watch” approach, balancing growth support with its primary mandate of price stability.

The RBI has been cautious in its stance over recent policy cycles, prioritizing inflation control while ensuring that economic momentum in key sectors such as manufacturing, services, and consumption remains intact.

Inflation Target Remains Key Focus

The Government of India has mandated the RBI to keep Consumer Price Index (CPI)-based inflation at 4%, with a tolerance band of +/- 2%. This effectively places the acceptable inflation range between 2% and 6%.

Recent data trends suggest that while inflation has moderated from earlier peaks, volatility in food and energy prices continues to pose risks. Central bank policymakers are therefore expected to maintain a conservative approach to any rate adjustments.

MPC Composition and Decision-Making

The six-member Monetary Policy Committee responsible for the decision includes:

• RBI Governor Sanjay Malhotra (Chairperson)
• Deputy Governor Poonam Gupta
• Executive Director Indranil Bhattacharyya
• Nagesh Kumar (Director, ISID)
• Saugata Bhattacharya (Economist)
• Ram Singh (Director, Delhi School of Economics)

The committee meets bi-monthly to evaluate macroeconomic conditions, inflation trends, growth projections, and global financial developments before deciding on policy rates.

What Markets Expect

Financial markets are largely factoring in a status quo decision, with analysts suggesting that any rate cut would be premature given persistent external risks.

Bond yields, equity indices, and currency movements are expected to react depending on the tone of the policy statement, especially any forward guidance regarding inflation outlook and future rate trajectory.

Key Watchpoints

Investors and economists will closely monitor:

• RBI’s inflation forecast revisions
• Commentary on global crude oil price risks
• Growth outlook for FY2026
• Liquidity management stance
• Signals on future rate cuts or pauses

Conclusion

As the RBI MPC prepares to unveil its decision, the focus will remain on whether the central bank continues its cautious stance or signals a shift in policy direction later in the year. For now, stability appears to be the most likely outcome, with the repo rate expected to hold steady at 5.25%.