Mumbai: The Reserve Bank of India (RBI) on Wednesday left the benchmark repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) unanimously voting to maintain the status quo amid persistent global uncertainties.

Announcing the outcome of the MPC's three-day meeting, RBI Governor Sanjay Malhotra said the committee had also decided to retain its 'neutral' monetary policy stance.

The MPC met from August 3 to August 5 for its third bi-monthly policy review of the 2026–27 financial year.

The decision comes against the backdrop of a challenging global macroeconomic environment, with the continuing impact of the US-Iran conflict weighing on growth and inflation. However, easing crude oil prices and expectations of a diplomatic breakthrough have improved market sentiment in recent weeks.

The RBI's decision was largely in line with market expectations, with economists and analysts widely predicting that the central bank would keep the repo rate unchanged while monitoring domestic inflation and economic growth amid heightened global uncertainty.

The latest policy follows the RBI's June review, when the MPC had also retained the repo rate at 5.25 per cent and maintained its neutral stance.

At the time, the central bank kept the Standing Deposit Facility (SDF) rate unchanged at 5 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate remained at 5.5 per cent.

Markets will now closely watch the RBI's commentary on inflation, liquidity conditions and the domestic growth outlook for clues on the future direction of monetary policy.