RBI Holds at 5.25% as $41 Billion Floods Into India
The Reserve Bank of India held its repo rate at 5.25% for a fourth straight meeting in a unanimous August 2026 decision, maintaining a neutral stance as growth forecasts rose and inflation projections edged lower. Nearly $41 billion in overseas capital has flowed into India since June, covering almost twice the current account deficit, with MUFG raising its inflow forecast to $87 billion. Analysts at BBH and MUFG see the rupee supported in the near term, with USD/INR expected to grind towards 94.00 before rebounding next year.
News