RBI MPC Meeting 2026, Kept Repo Rates Unchanged at 5.25%

The Monetary Policy Committee (MPC) of the Reserve Bank of India, in its 60th meeting held from April 6 to 8, 2026, decided to keep the repo rate unchanged at 5.25%. The meeting was chaired by Sanjay Malhotra and reflects a cautious approach amid global uncertainties and domestic resilience.

Key Policy Decisions

• Repo Rate: Unchanged at 5.25%
• Standing Deposit Facility (SDF): 5.00%
• Marginal Standing Facility (MSF) & Bank Rate: 5.50%
• Policy Stance: Neutral

The MPC unanimously voted to maintain the current rates, emphasizing a “wait and watch” approach due to evolving global and domestic conditions.

Growth Outlook for India

The Indian economy continues to show strong resilience:

• GDP Growth (2025-26): Estimated at 7.6%
• GDP Projection (2026-27): 6.9%

Key growth drivers include:

• Strong private consumption
• Increased investment demand
• Robust services and manufacturing sectors

However, risks such as global conflicts and supply disruptions may impact growth momentum.

Inflation Outlook

• CPI Inflation (Feb 2026): 3.2%
• Projected Inflation (2026-27): 4.6%

Factors influencing inflation:

• Rising global energy prices
• Supply chain disruptions
• Weather-related risks (like El Niño)

Core inflation remains moderate, indicating controlled underlying price pressures.

Global and Domestic Challenges

The MPC highlighted several external risks:

• Ongoing geopolitical tensions in West Asia
• Disruptions in global supply chains
• Volatility in commodity and energy prices

Domestically, India remains stable due to:

Strong financial institutions

• Government focus on manufacturing and infrastructure
• Healthy demand conditions
• Rationale Behind the Decision

The MPC chose to keep rates unchanged due to:

• Balanced inflation levels but rising risks
• Strong but vulnerable growth outlook
• Uncertainty in global economic conditions

The committee emphasized flexibility and readiness to act based on future data and developments.

Upcoming MPC Schedule

• Minutes Release: April 22, 2026
• Next MPC Meeting: June 3–5, 2026

Important Facts for Exams

• Repo rate is the rate at which RBI lends money to commercial banks
• MPC is responsible for setting India’s monetary policy
• Inflation target of RBI is 4% (±2%)RBI headquarters: Mumbai