At its August 2026 meeting, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at what percentage?
5.25%
The policy repo rate is the rate at which the Reserve Bank of India lends overnight funds to banks against government securities under the liquidity adjustment facility (LAF). It is the main tool by which the RBI signals its monetary policy.
The RBI cut the repo rate in steps through 2025, bringing it down to 5.25% in December 2025. At its August 2026 meeting, the Monetary Policy Committee decided to keep the repo rate unchanged at 5.25%.
The other figures do not match any recent level of the policy repo rate. A rate as low as 2.12% or as high as 7.26% and 9.88% is far from the range in which the RBI has kept the repo rate in recent years.
Hence, 5.25%.
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