UNCHANGED REPO RATE : IS IT A DOVISH MONETARY POLICY?
AUGUST MONETARY POLICY After a detailed assessment of evolving macroeconomic and financial conditions and the outlook , the 62nd meeting of RBI's Monetary policy Committee held under the Chairman ship of RBI Governor during August 3-5 2026 unanimously decided to keep policy rates unchanged .Accordingly repo rate under liquidity adjustment facility (LAF) remained intact at 5.25% ,consequently the Standing Deposit Facility (SDF) rate 5.00%, further the marginal standing facility(MSF) rate and bank rate remained at 5.50%. Further MPC decided to continue with the neutral stance.This is the fourth consecutive policy review in which the repo rate remained unchanged. RBI Governor also observed that Central Bank does not see itself the policy either Dovish or Hawkish. RBI also raised its GDP growth projections by 10 basis points to 6.7% for 2026-27 despite inflation risks that have been building up since the occurrence of West Asia Crisis. RBI also lowe...