RBI MPC Meeting 2026 LIVE: The Reserve Bank of India (RBI) will announce its monetary policy decision today, 5 June 2026, Friday. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) held its second bi-monthly policy meeting for FY27 from June 3 to June 5, and the repo rate decision is set to be announced today.
The June RBI MPC meeting comes at a time when the macroeconomic environment is becoming increasingly challenging, amid the adverse impact of the US-Iran war in the Middle East on domestic growth and inflation dynamics. The ongoing geopolitical tensions have triggered a sharp rise in crude oil prices, adding pressure on India’s inflation outlook and contributing to the depreciation of the rupee.
Several emerging economies (EM) like Indonesia, Philippines and Sri Lanka saw surprise interest rate hikes, raising hopes among a section of the market that the RBI could tighten policy to support the rupee.
Meanwhile, the evolving El Niño conditions, heatwave and below-normal monsoon is likely to be inflationary.
RBI Monetary Policy Expectations
Economists expect the RBI MPC to keep the repo rate unchanged while signaling its readiness to act if inflation risks increase and second-round pressures start building.
As the impact of higher energy prices on the broader economy continues to unfold, the RBI is expected to highlight uncertainty around Brent crude oil prices due to ongoing geopolitical tensions. Along with the rising risk of El Niño, this could prompt the central bank to raise its FY27 inflation forecast while also flagging downside risks to growth.
Importantly, amid the recent weakness in the Indian rupee, the RBI is likely to reiterate the distinction between monetary policy and foreign exchange management under the inflation-targeting framework.
Economists said any future rate hike would be aimed at containing domestic demand pressures or anchoring inflation expectations, rather than supporting the rupee.
Stay tuned to this segment for RBI MPC meeting live updates.
