{"id":13228,"date":"2026-06-06T11:51:17","date_gmt":"2026-06-06T06:21:17","guid":{"rendered":"https:\/\/www.class24.study\/current-affairs\/?p=13228"},"modified":"2026-06-06T12:48:36","modified_gmt":"2026-06-06T07:18:36","slug":"rbi-keeps-repo-rate-unchanged","status":"publish","type":"post","link":"https:\/\/www.class24.study\/current-affairs\/rbi-keeps-repo-rate-unchanged\/","title":{"rendered":"RBI Keeps Repo Rate Unchanged in June 2026: Key Updates"},"content":{"rendered":"<p><span style=\"font-weight: 400\">RBI (The Reserve Bank of India) kept the repo rate unchanged at 5.25% in its June 2026 Monetary Policy Committee (MPC) meeting, maintaining a neutral policy stance. However, the GDP growth forecast for FY27 has been cut from 6.9% to 6.6% by the central bank, while the inflation projection was raised from 4.6% to 5.1%. pointed to inflation risks from high crude oil prices, geopolitical tensions in West Asia, supply-chain disruptions, a depreciating rupee and weather-related concerns. , he said, noted that the Indian economy continues to be resilient despite these challenges. The move intends to manage economic growth along with curbing inflation as global uncertainties rise.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What is the RBI Monetary Policy?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Monetary policy: A monetary policy is devised by central banks to contain price stability with growth.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Objectives of Monetary Policy<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Control inflation.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Maintain financial stability.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Support sustainable economic growth.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Providing sufficient liquidity in the economy<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Strengthen investor confidence.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400\">Understanding the Repo Rate<\/span><\/h3>\n<p><span style=\"font-weight: 400\">Repo Rate: The interest rate at which a commercial bank borrows a limited amount of time excess liquidity from the Reserve Bank of India.<\/span><\/p>\n<p><b>Importance of Repo Rate<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Influences loan interest rates.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Affects borrowing costs for businesses.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Impacts consumer spending.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Helps control inflation.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Supports economic growth management.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Why Did RBI Keep the Repo Rate Unchanged?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The central bank decided to maintain the existing repo rate due to multiple economic factors.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Key Reasons Behind the Decision<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Inflation remains above comfort levels.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Global economic uncertainties continue.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Geopolitical tensions affect markets.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Need to maintain financial stability.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Assessment of previous policy actions.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Monetary Policy, Repo Rate &amp; Inflation PYQs<\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Exam\/Year<\/b><\/td>\n<td><b>Question<\/b><\/td>\n<td><b>Options<\/b><\/td>\n<td><b>Correct Answer<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">UPSC Prelims 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">What is the repo rate?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Rate at which banks lend to customers B) Rate at which RBI lends to banks C) Tax imposed by RBI D) Deposit rate for customers<\/span><\/td>\n<td><b>B) Rate at which RBI lends to banks<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SSC CGL 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">Which institution decides the repo rate in India?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) SEBI B) RBI C) NITI Aayog D) Finance Ministry<\/span><\/td>\n<td><b>B) RBI<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">IBPS PO 2025<\/span><\/td>\n<td><span style=\"font-weight: 400\">The Monetary Policy Committee (MPC) is primarily responsible for?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Fiscal Policy B) Tax Collection C) Monetary Policy Decisions D) Foreign Trade<\/span><\/td>\n<td><b>C) Monetary Policy Decisions<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">RBI Grade B 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">Which of the following is a monetary policy tool of RBI?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) GST B) Repo Rate C) Income Tax D) Customs Duty<\/span><\/td>\n<td><b>B) Repo Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SSC CHSL 2025<\/span><\/td>\n<td><span style=\"font-weight: 400\">An increase in the repo rate generally leads to?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Cheaper Loans B) Higher Borrowing Cost C) Lower Inflation Immediately D) Higher Exports<\/span><\/td>\n<td><b>B) Higher Borrowing Cost<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">UPSC 2023<\/span><\/td>\n<td><span style=\"font-weight: 400\">What is the primary objective of inflation targeting by RBI?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Increase Exports B) Maintain Price Stability C) Increase Tax Revenue D) Promote Imports<\/span><\/td>\n<td><b>B) Maintain Price Stability<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">NABARD Grade A 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">Which committee sets the benchmark interest rate in India?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Finance Commission B) Monetary Policy Committee C) GST Council D) NITI Aayog<\/span><\/td>\n<td><b>B) Monetary Policy Committee<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SSC GD 2025<\/span><\/td>\n<td><span style=\"font-weight: 400\">RBI was established in which year?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) 1935 B) 1947 C) 1950 D) 1969<\/span><\/td>\n<td><b>A) 1935<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SBI PO 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">Inflation refers to?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Fall in Prices B) Rise in General Price Level C) Increase in Production D) Increase in Employment<\/span><\/td>\n<td><b>B) Rise in General Price Level<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">UPSC 2022<\/span><\/td>\n<td><span style=\"font-weight: 400\">Which index is commonly used by RBI for inflation targeting?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) WPI B) CPI C) IIP D) BSE Sensex<\/span><\/td>\n<td><b>B) CPI<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SSC CGL 2023<\/span><\/td>\n<td><span style=\"font-weight: 400\">Who chairs the Monetary Policy Committee of India?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Finance Minister B) RBI Governor C) Prime Minister D) Economic Adviser<\/span><\/td>\n<td><b>B) RBI Governor<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">IBPS Clerk 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">What happens when RBI keeps the repo rate unchanged?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Loan rates automatically rise B) Monetary policy stance remains stable C) Inflation becomes zero D) Taxes increase<\/span><\/td>\n<td><b>B) Monetary policy stance remains stable<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">RBI Grade B 2025<\/span><\/td>\n<td><span style=\"font-weight: 400\">How many members are there in the Monetary Policy Committee?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) 4 B) 5 C) 6 D) 8<\/span><\/td>\n<td><b>C) 6<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">SSC MTS 2024<\/span><\/td>\n<td><span style=\"font-weight: 400\">Which of the following is NOT a monetary policy tool?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Repo Rate B) Reverse Repo Rate C) CRR D) GST<\/span><\/td>\n<td><b>D) GST<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400\">UPSC Prelims 2021<\/span><\/td>\n<td><span style=\"font-weight: 400\">A higher repo rate generally aims to control?<\/span><\/td>\n<td><span style=\"font-weight: 400\">A) Deflation B) Inflation C) Unemployment D) Imports<\/span><\/td>\n<td><b>B) Inflation<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: center !important\"><a href=\"https:\/\/www.class24.study\/current-affairs\/fssai-makes-vegan-logo-mandatory\/\" target=\"_blank\" rel=\"noopener\">FSSAI Vegan Logo 2027<\/a><\/p>\n<h2><span style=\"font-weight: 400\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The RBI Keeps Repo Rate Steady, Lowers Growth Prediction But Raises Inflation Outlook story underscores the cautious approach of the central bank in managing India&#8217;s economy in a challenging global and domestic environment. With the repo rate largely unchanged but growth and inflation targets being revised, it walks the fine line between putting more pressure on the pedal to accelerate economic activity while tackling prices when they are heading for a spike.<\/span><\/p>\n<h1><b>FAQs\u00a0<\/b><\/h1>\n<div class=\"cfaq-wrapper\" data-multiple=\"0\"><div class=\"cfaq-item cfaq-open\"><button class=\"cfaq-question\" aria-expanded=\"true\">What does it mean when RBI keeps the repo rate unchanged?<span class=\"cfaq-icon\">&#8743;<\/span><\/button><div class=\"cfaq-answer\"><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">It means the RBI has decided not to change the interest rate at which commercial banks borrow money from the central bank.<\/span><\/div><div><br><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\">Why did RBI keep the repo rate unchanged?<span class=\"cfaq-icon\">&#8744;<\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">RBI maintained the rate to balance inflation control and economic growth amid global uncertainties.<\/span><\/div><div><br><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\">What is the repo rate?<span class=\"cfaq-icon\">&#8744;<\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">The repo rate is the rate at which commercial banks borrow short-term funds from the Reserve Bank of India.<\/span><\/div><div><br><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\">Why did RBI cut the growth forecast?<span class=\"cfaq-icon\">&#8744;<\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">&nbsp;Growth projections were lowered due to global economic challenges, trade uncertainties, and weaker external demand.<\/span><\/div><div><br><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\">Why was the inflation outlook raised?<span class=\"cfaq-icon\">&#8744;<\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">Inflation projections were increased because of rising food prices, energy costs, and supply-side pressures.<\/span><\/div><div><br><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>RBI (The Reserve Bank of India) kept the repo rate unchanged at 5.25% in its June 2026 Monetary Policy Committee (MPC) meeting, maintaining a neutral policy stance. However, the GDP growth forecast for FY27 has been cut from 6.9% to 6.6% by the central bank, while the inflation projection was raised from 4.6% to 5.1%. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":13229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-13228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/13228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/comments?post=13228"}],"version-history":[{"count":4,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/13228\/revisions"}],"predecessor-version":[{"id":13234,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/13228\/revisions\/13234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media\/13229"}],"wp:attachment":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media?parent=13228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/categories?post=13228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/tags?post=13228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}