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RBI keeps repo rate unchanged at 6.50% amid rising inflation

The RBI Governor added that after detailed deliberations on all relevant aspects, the MPC decided unanimously to keep the policy repo rate unchanged at 6.50 per cent.

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Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das on Thursday affirmed that the central bank’s Monetary Policy Committee (MPC) decided to keep the key repo rate unchanged at 6.50 per cent, in line with what the economists had predicted. According to reports, this marks the third time that the 6 member NPC has decided to keep the key rates unchanged. 

The RBI Governor added that after detailed deliberations on all relevant aspects, the MPC decided unanimously to keep the policy repo rate unchanged at 6.50 per cent. Furthermore, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent and the Marginal Standing Facility (MSF) rate and the bank rate stand at 6.75 per cent. 

Saktikanta Das further noted that the MPC also decided by a majority of 5 among 6 members to focus on the withdrawal of accommodation to ascertain inflation progressively aligns with the target while supporting growth. Nonetheless, RBI governor Saktikanta Das expressed concern related to the sharp increase in inflation over the last few months. He asserted that the inflation has compelled the central bank to maintain a hawkish stance. 

While explaining the rationale behind the MPC’s policy, Shaktikanta Das remarked that headline inflation, after reaching a low of 4.3 per cent in May 2023, increased in June and is likely to increase during July and August, led by the rising vegetable prices. The Governor stated that while the vegetable price shock may reverse quickly, possible El Nino weather condition along with food global prices needs to be watched closely against the backdrop of a skewed southwest monsoon.

He continued that these developments warrant heightened vigilance on the evolving inflation trajectory. He mentioned that the cumulative rate hike of 250 basis points undertaken by the MPC as yet is working its way to the economy. On the other hand, he noted that the domestic economic activity is holding up well and is likely to retain its momentum, despite weak external demand. He ascertained that the MPC remained resolute in its commitment to aligning inflation to the 4% target as well as anchoring inflation expectations. 

India News

West Bengal Governor dissolves Assembly amid political transition 

Governor R N Ravi dissolved the West Bengal Assembly after the 2026 poll results, with the BJP securing a majority in the state elections.

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The West Bengal Legislative Assembly was dissolved following the conclusion of the 2026 Assembly elections, in which the Bharatiya Janata Party secured a clear majority in the state.

Governor R N Ravi issued the order dissolving the Assembly as the state prepared for the transition of power after the election results. According to reports, the BJP won 207 seats in the 294-member Assembly, while the Trinamool Congress secured 80 seats.

Chief Minister Mamata Banerjee questioned the election outcome and alleged irregularities in the poll process, claiming the mandate had been “looted”.

The dissolution came as the tenure of the existing Assembly ended on May 7, 2026. The development has sparked political discussions over the formation of the next government in the state.

Meanwhile, Mamata Banerjee held a meeting with newly elected Trinamool Congress MLAs in Kolkata and reportedly raised concerns over internal sabotage during the elections.

The BJP is expected to begin the formal process of government formation in West Bengal after its decisive victory in the Assembly polls.

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Eknath Shinde’s helicopter returns to Mumbai mid-flight due to bad weather

Maharashtra Deputy Chief Minister Eknath Shinde’s helicopter was forced to return to Mumbai after the pilot detected approaching storm conditions during a flight to Thane district.

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A helicopter carrying Maharashtra Deputy Chief Minister Eknath Shinde was forced to return to Mumbai on Thursday after encountering adverse weather conditions during a flight to Thane district.

According to officials, Shinde had departed from Mahalaxmi Racecourse in south Mumbai around 3.30 pm and was travelling to Murbad in Thane district to attend a wedding function related to a party worker’s family.

The helicopter reportedly reached the Airoli area in Navi Mumbai when the pilot noticed an approaching storm and informed the deputy chief minister about the deteriorating weather conditions. Following the alert, the flight was turned back as a precautionary measure.

The helicopter later landed safely at the Pawan Hans facility in Juhu, Mumbai. Officials said Shinde was accompanied by members of his staff, including personal assistant Prabhakar Kale, special executive officer Balsingh Rajput and media adviser Vinay Patrdukar.

The incident comes amid changing weather conditions and storm activity reported in parts of Maharashtra in recent days.

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Nitish Kumar’s son Nishant among 32 inducted in Bihar cabinet expansion

Nishant Kumar entered the Bihar cabinet for the first time as 32 ministers from NDA allies took oath in a major expansion of the state government.

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Bihar government cabinet

A major cabinet expansion took place in Bihar on Thursday, with 32 leaders from the ruling NDA alliance inducted into the state government. Among the prominent names was Nishant Kumar, son of former Bihar chief minister Nitish Kumar, who entered the cabinet for the first time.

The expansion included representatives from all major NDA allies in the state. According to reports, the BJP secured 15 ministerial berths, while JD(U) got 13 positions. Two ministers were inducted from Lok Janshakti Party (Ram Vilas), while Hindustani Awam Morcha and Rashtriya Lok Morcha received one berth each.

The oath-taking ceremony was held in Patna in the presence of senior NDA leaders, including Prime Minister Narendra Modi, Union Home Minister Amit Shah and Defence Minister Rajnath Singh.

Nishant Kumar’s induction comes weeks after he formally entered active politics. His entry into the Bihar cabinet is being viewed as a significant development for JD(U), which had long projected an anti-dynasty image under Nitish Kumar’s leadership.

The cabinet reshuffle follows Nitish Kumar’s move to the Rajya Sabha earlier this year and the formation of the government led by Chief Minister Samrat Choudhary.

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