The Reserve Bank of India’s Monetary Policy Committee kept the policy repo rate unchanged at 5.25 %, left the Standing Deposit Facility at 5.00 % and the Marginal Standing Facility/Bank Rate at 5.50 %, and retained a neutral stance, judging that sub-target February CPI inflation of 3.2 % (after 2.7 % in January) is overshadowed by rising energy-led price risks and potential weather-related food pressures amid still-robust domestic demand and investment. The decision follows a cumulative 75 bp of repo cuts between April and December 2025 and an unchanged rate in February 2026. Operating parameters of the liquidity adjustment facility were unaltered. Real GDP grew 7.6 % in 2025-26 and is projected to moderate to 6.9 % in 2026-27, with quarterly growth seen ranging from 6.7 % to 7.2 %. CPI inflation is forecast to average 4.6 % in 2026-27, though underlying core (excluding food, fuel and precious metals) stayed subdued at 2.1 % in early 2026. The West Asia conflict has upended global supply chains, driven up commodity prices, pushed sovereign yields higher and strengthened the USD, while threatening India’s merchandise exports via costlier and disrupted shipping routes. Reaffirming India’s macroeconomic resilience, the MPC said it will remain vigilant and stands ready to adjust policy as the growth-inflation balance evolves.
Reserve Bank of India2026-04-08
Reserve Bank of India keeps policy repo rate unchanged at 5.25 %
India’s Monetary Policy Committee left the policy repo at 5.25 %, the Standing Deposit Facility at 5.00 % and the Marginal Standing Facility/Bank Rate at 5.50 %, retaining a neutral stance after last year’s 75 bp of cuts. The MPC cited February’s 3.2 % CPI print but warned of energy and food price pressures and pledged continued vigilance.