RBI Monetary Policy April 2026: Repo Rate Unchanged at 5.25% – Key Highlights & Impact

The Reserve Bank of India (RBI) announced its Monetary Policy Committee (MPC) decision today, April 8, 2026, keeping the policy repo rate steady at 5.25% with a neutral stance. This unanimous decision follows a cumulative 125 basis points cut since February 2025, amid rising geopolitical risks and crude oil prices.

Key Policy Decisions

• Repo rate held at 5.25%; reverse repo at 3.35%; SDF at 5.00%; MSF and bank rate at 5.50%.
• Neutral stance maintained to balance inflation control and growth support.
• No changes despite imported inflation pressures from oil shocks.

Economic Projections

RBI projects GDP growth around 6.9% for FY27, with potential downward revisions due to global tensions like US-Iran issues. Inflation outlook revised upward, though FY26 projection was lowered to 2% earlier.

Impact on Borrowers & Economy

Unchanged rates mean stable EMIs for home, auto, and personal loans, but banks may adjust lending gradually. Lower corporate borrowing costs persist from prior cuts, supporting investment; stock markets likely steady. Fixed deposit rates remain attractive amid liquidity focus.

This status quo signals RBI’s caution on supply-side inflation while prioritizing growth in FY26-27. Stay tuned for Governor Sanjay Malhotra’s press conference details

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RBI’s GDP Growth Projections for FY 2026-27 (April 2026-March 2027)

RBI has not yet released a full-year GDP growth projection for FY 2026-27 in today’s April 2026 policy, deferring it pending the new GDP series data.

Quarterly Projections

In the February 2026 policy, RBI revised Q1 FY27 growth to 6.9% (up from 6.7%) and Q2 to 7.0% (up from 6.8%), citing strong domestic demand, services buoyancy, and investment momentum.

Key Drivers and Risks

Projections are supported by resilient consumption, manufacturing revival, and agriculture outlook, with evenly balanced risks from global trade volatility and commodity prices. Full-year outlook awaits April policy confirmation after data release

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NOTE: *** The above information is based on the source and just for educational purposes only. Please consult your financial advisor before buying any stocks. Thank You ***

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