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RBI may stay on pause as inflation clouds outlook
Mint Chennai
|June 01, 2026
A Mint poll suggests the central bank may also maintain its neutral stance
India’s central bank is expected to keep interest rates unchanged despite a sharp depreciation in the rupee and repeated fuel price hikes following the West Asia conflict, a Mint poll of 10 economists showed.
The Reserve Bank of India (RBI) is likely to maintain the policy repo rate at 5.25% this week, the poll found. The repo (repurchase) rate is the rate at which the central bank lends money to commercial banks for short-term requirements, typically against government securities as collateral.
The RBI’s Monetary Policy Committee (MPC) is scheduled to announce its policy decision after its 3-5 June meeting. The central bank is also expected to maintain its ‘neutral’ stance, which allows it to raise or cut rates even as it grapples with a rapidly depreciating rupee, elevated crude oil prices and the risk of imported inflation.
This story is from the June 01, 2026 edition of Mint Chennai.
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