RBI Holds Repo Rate at 5.25% - Neutral Stance Maintained
The Reserve Bank of India’s Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra, kept the repo rate unchanged at 5.25% during its April 2026 policy meeting while continuing with a ‘neutral’ monetary policy stance amid global uncertainties and rising crude oil prices due to the West Asia conflict. The RBI retained the Standing Deposit Facility (SDF) rate at 5% and the Marginal Standing Facility (MSF) and bank rate at 5.5%. The central bank projected India’s real GDP growth for FY27 at 6.9% and CPI inflation at 4.6%, while cautioning that geopolitical tensions, higher energy prices and disruptions in global shipping routes could pose risks to growth and inflation. At the same time, the RBI expressed confidence in India’s economic resilience, supported by strong services exports, trade agreements, robust rabi output and comfortable food grain stocks. The next MPC meeting outcome, expected in June 2026, will be closely watched for any further rate movement.
