Image Source: Times nOW

The RBI’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, will announce its decision on June 5, 2026. Borrowers and businesses are closely watching the outcome, as global conflicts, rupee volatility, and energy price spikes have raised concerns about inflation and growth stability.

Current Rate And Inflation Trends

• Repo rate: 5.25% (unchanged since February 2026).
• Inflation: Rose from 3.2% in February 2026 to 3.5% in April 2026, mainly due to higher fuel costs.
• Growth outlook: GDP growth for FY27 projected at 6.9%, supported by resilient domestic demand. 

Expert Views

• Majority view: RBI will maintain status quo to support growth while monitoring inflation.
• Minority view: Some economists expect a 25–50 basis point hike later in FY27 if supply shocks persist.
• Industry stance: ASSOCHAM has urged RBI to hold rates steady and instead provide liquidity support for MSMEs facing energy cost pressures. 

What Borrowers Should Know

• Home loan EMIs: Likely to remain stable in June, but borrowers should prepare for possible hikes later in the year if inflation worsens.
• Business loans: MSMEs may benefit from liquidity and moratorium support measures, even if repo rates stay unchanged.
• Currency impact: RBI recently conducted a USD 5 billion USD/INR swap auction to stabilize the rupee, indirectly supporting borrowing costs. 

Borrower Insights Highlights

•⁠  ⁠RBI MPC meeting scheduled June 3–5, decision on June 5, 2026

•⁠  ⁠Repo rate currently at 5.25%, unchanged since February 2026

•⁠  ⁠Inflation rose to 3.5% in April due to higher fuel prices

•⁠  ⁠Majority expect status quo, minority warn of possible hike later in FY27

•⁠  ⁠ASSOCHAM urges RBI to hold rates and support MSMEs with liquidity measures

•⁠  ⁠Borrowers should expect stable EMIs in June but remain cautious about future hikes

Sources: Republic World, News18, Goodreturns, KNN India, Market News & Analysis