Mumbai, Apr 8: The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 5.25% in its first monetary policy review of FY 2026-27, as the Monetary Policy Committee (MPC) unanimously opted to maintain stability amid rising global uncertainties and geopolitical risks.
RBI Governor Sanjay Malhotra announced the decision after the MPC’s April 6-8 deliberations. “After assessing evolving macroeconomic and financial developments, the MPC voted to keep the repo rate at 5.25% under the liquidity adjustment facility,” he said. This leaves the Standing Deposit Facility (SDF) rate at 5%, and the Marginal Standing Facility (MSF) rate and bank rate at 5.5%.
The policy reflects challenges from the West Asia conflict, which has disrupted supply chains, spiked energy prices, and fueled inflation. Global growth faces downside risks, with volatile financial markets, a stronger US dollar, and corrections in equities and bonds.
Governor Malhotra noted India’s resilient fundamentals—strong growth and low inflation pre-conflict—position it better than peers to weather shocks, despite March’s adverse turns.
