Economy · 7 Aug 2026

RBI repo rate August 2026

Consider the following statements regarding recent India-Bangladesh diplomatic developments:

  1. Sheikh Hasina fled to India in August 2024 after mass protests ended her 15-year rule.
  2. India extended the invitation to Tarique Rahman for the 18th BRICS Summit outreach session specifically in his capacity as Bangladesh's Prime Minister.
  3. A Dhaka tribunal order from December 2024 bars domestic Bangladeshi media from broadcasting Sheikh Hasina's speeches.
  4. Tarique Rahman of the BNP became Bangladesh's Prime Minister in February

How many of the above statements are correct?

AThe MPC raised the repo rate to 5.25% to contain rising headline inflation.
BThe MPC lowered the FY27 GDP growth forecast while raising the inflation forecast.
CThe MPC held the repo rate unchanged at 5.25% while raising the FY27 growth forecast and lowering the inflation forecast.
DThe MPC shifted its stance from neutral to accommodative to support growth.
This question is based on: RBI Holds Repo Rate at 5.25%, Raises FY27 Growth Outlook to 6.7% Amid Global Supply Risks
Take this in full test mode → Instructions for 7 Aug 2026
About this question

Why in news

The RBI's MPC kept the repo rate unchanged at 5.25% in August 2026, citing food and fuel-driven headline inflation alongside benign core inflation and resilient growth.

Why for UPSC

A recurring UPSC pattern tests whether candidates confuse a "hold" decision with the surrounding forecast revisions - precision on what actually moved versus what stayed fixed is the real test here.

Prelims summary

August 2026: repo rate held at 5.25%; FY27 growth forecast raised to 6.7%; FY27 inflation forecast cut to 5.0%; stance remained neutral.

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