Key Highlights
- Repo rate retained at 5.25% during the 60th MPC meeting (April 6‑8, 2026).
- Standing Deposit Facility set at 5.00%; MSF and Bank Rate remain at 5.50%.
- Growth forecast: 7.6% for FY25‑26, 6.9% for FY26‑27.
- Inflation expected to rise from 3.2% (Feb 2026) to 4.6% (2026‑27).
- Committee adopts a neutral stance, emphasizing a “wait‑and‑watch” posture.
Detailed Insights
The Monetary Policy Committee (MPC) of the Reserve Bank of India convened its 60th session from 6 to 8 April 2026 under the chairmanship of Sanjay Malhotra. After unanimous deliberation, the panel opted to keep the policy repo rate unchanged at 5.25%, signalling a cautious approach given volatile external environments and a still‑robust domestic economy.
Key policy parameters were left untouched: the Standing Deposit Facility (SDF) stays at 5.00%, while the Marginal Standing Facility (MSF) and the Bank Rate continue at 5.50%. The committee described its stance as “neutral,” implying no immediate bias toward tightening or easing.
Growth projections remain strong, with the RBI estimating a 7.6% expansion for FY2025‑26 and a modest slowdown to 6.9% in FY2026‑27. The outlook is anchored by vigorous private consumption, rising investment appetite, and resilient services and manufacturing output. Nevertheless, the MPC warned that geopolitical tensions in West Asia, persistent supply‑chain bottlenecks, and commodity price swings could erode momentum.
On the price‑side, consumer‑price inflation (CPI) recorded 3.2% in February 2026 and is expected to climb to 4.6% in the next fiscal year. The upward pressure stems from higher global energy costs, lingering supply disruptions, and weather‑related shocks such as El Niño. Core inflation, however, remains moderate, suggesting that underlying price pressures are still under control.
The committee underscored its readiness to adjust policy swiftly should data warrant, citing balanced inflation, heightened external risks, and a growth picture that is strong yet vulnerable.
Key dates: the minutes of this meeting will be released on 22 April 2026, and the next MPC gathering is slated for 3‑5 June 2026.