RBI Holds Repo Rate at 5.25%, Keeps Neutral Stance in April 2026
RBI Holds Repo Rate at 5.25%, Keeps Neutral Stance in April 2026
RBI keeps policy rate at 5.25% with a neutral stance, projecting 6.9% GDP growth amid global oil-price volatility.
The Reserve Bank of India has left the policy repo rate unchanged at 5.25 per cent in its first bi-monthly Monetary Policy Statement for 2026-27, while keeping the policy stance neutral. The Monetary Policy Committee, chaired by Governor Sanjay Malhotra, voted unanimously to hold rates steady under the liquidity facility. The Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the bank rate at 5.5 per cent. The MPC also projected GDP growth of 6.9 per cent for the year, with quarterly arrangements of 6.8 per cent in Q1, 6.7 per cent in Q2, 7.0 per cent in Q3, and 7.2 per cent in Q4. The policy review is part of the committee’s ongoing assessment of evolving macroeconomic and financial developments against a backdrop of global uncertainty.\n\nGlobal tensions in West Asia, including disruptions to energy supply routes such as the Strait of Hormuz, have pushed crude prices higher. While a temporary ceasefire has eased some immediate concerns, the broader economic impact continues to weigh on both global and domestic markets. The RBI noted that higher oil prices add to inflationary pressures and could influence monetary conditions in the near term, reinforcing the case for a steady stance rather than an abrupt move.\n\nDomestically, the decision provides a degree of relief to borrowers and savers by keeping financing costs predictable. With the repo rate unchanged and the stance unchanged, home loans, deposits, and savings instruments are unlikely to see sharp shifts in the near term. Banks may still adjust lending margins in line with their cost of funds and liquidity conditions. The RBI underscored vigilance on oil price movements and exchange-rate dynamics, signaling that monetary policymakers will closely monitor incoming data and external shocks.\n\nMarket watchers will track inflation, growth, and external developments as the policy path remains data-driven. The MPC will reconvene in due course to reassess if inflation trends or the external environment deteriorates, maintaining macro stability while supporting domestic growth amid global volatility.
