RBI MPC Maintains Repo Rate Unchanged | 09 Apr 2026

Source: TH 

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%, reflecting a cautious approach amid global uncertainties and domestic inflation risks. 

• Policy Rates (Status Quo): The policy repo rate under the Liquidity Adjustment Facility (LAF) remains unchanged at 5.25%.  
  • Consequently, the Standing Deposit Facility (SDF) rate remains at 5%, and both the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.50%. 
• Policy Stance: The MPC has continued with a neutral stance, adopting a wait-and-watch strategy in a volatile global environment.  
• Revised GDP Growth: Real GDP growth for 2025-26 is estimated at 7.6% (based on the Second Advance Estimates of the new GDP series with base year 2022-23). 
  • However, the growth forecast for 2026-27 has been cut to 6.9% due to global financial volatility and supply shocks. 
• Inflation Outlook: The inflation projection has been hiked, with CPI inflation for 2026-27 projected at 4.6% (using the new CPI series: base year 2024=100). Food inflation and persistently elevated energy prices remain critical concerns. 
• Macroeconomic Risks: The primary downside risks to the Indian economy include the prolonged 2026 West Asia conflict, supply-chain disruptions in the Strait of Hormuz, resulting spikes in global energy/freight costs, and potential El Niño conditions threatening the southwest monsoon and agriculture. 
• Domestic Resilience: Growth continues to be driven by robust private consumption, fixed investment demand, a buoyant services sector, and healthy balance sheets of financial institutions.  
  • Government initiatives targeting domestic manufacturing (Union Budget 2026-27) are expected to further support the ensuing growth trajectory.