Key Highlights of RBI MPC Policy Decision – June 5, 2026

📊 Core Policy Decision

Parameter	Decision	Previous
Repo Rate	5.25% (unchanged)	5.25%
Policy Stance	Neutral	Neutral
MPC Vote	6-0 unanimous	—

🏛️ Key Economic Projections

Metric	New Forecast	Previous Forecast	Change
FY27 GDP Growth	6.6%	6.9%	⬇️ -0.3%
FY27 CPI Inflation	5.1%	4.6%	⬆️ +0.5%
FY27 Core Inflation	4.7%	—	—

🔑 Major Announcements

1. Repo Rate Hold Rationale:

Unanimous decision to wait for greater clarity on inflation and growth risks
Inflation risks intensified by higher energy prices, global supply constraints, and monsoon uncertainties
Governor Sanjay Malhotra: “RBI’s inflation target of 4% remains unchanged and is not in abeyance”

2. Foreign Investment Liberalisation (6-Point Package):

Measure	New Limit/Change
NRI/OCI Individual Limit	Doubled to 10% (from 5%)
NRI/OCI Aggregate Limit	Raised to 24% (from 10%)
FPI in Govt Bonds	Removed short-term investment limits & concentration norms
FAR Expansion	All new 15-year, 30-year, 40-year G-secs under Fully Accessible Route
Export Proceeds Realisation	Restored to 9 months
Forex Swaps	Concessional facilities for FCNR(B) deposits & external borrowings

3. Economic Concerns Cited:

Geopolitical tensions: West Asia conflict and US-Iran war risks
Rising crude oil prices and elevated energy costs
Global supply chain disruptions
Monsoon-related uncertainties
Current account deficit risks from higher energy prices

💡 What This Means for Investors

Loans: Interest rates on home loans, car loans, and personal loans remain unchanged
Fixed Deposits: FD rates likely to remain stable in near term
Stock Market: Defensive sectors (FMCG, pharma) may attract safe-haven buying; IT and metals under pressure
Rupee: Easing measures expected to support dollar inflows and strengthen rupee
Bond Market: FPI measures expected to deepen domestic bond markets and support government borrowing

Governor Sanjay Malhotra stated India can withstand external shocks with “minimum pain” and expressed confidence in stronger balance of payments this year.

Indian Stock Market performance today