New Delhi: The Reserve Bank of India’s (RBI) Monetary Policy Committee kept the repo rate unchanged at 5.25% on Wednesday. Governor Sanjay Malhotra announced the decision after the three-day meeting that ran from April 6 to 8 – the first policy review of the financial year 2026-27.
The committee continued its neutral policy stance. The decision follows the RBI’s move in February 2026 to hold the rate at 5.25%, after cumulative cuts of 125 basis points through 2025.
The standing deposit facility rate remained at 5%. Both the marginal standing facility rate and the bank rate stayed at 5.5%.
In a press release, Governor Malhotra also said the RBI projects real GDP growth at 6.9% for FY27. The quarterly breakdown puts Q1 at 6.8%, Q2 at 6.7%, Q3 at 7%, and Q4 at 7.2%.
The ongoing conflict in West Asia has pushed up crude oil prices and put pressure on the rupee. Governor Malhotra warned that goods exports face headwinds from disruptions to major shipping routes, rising freight and insurance costs, and softer global demand.
The governor added that merchandise exports may benefit from recent trade agreements – many signed last year, with others expected to become operational this year – while services exports are expected to remain resilient.
The RBI projected CPI inflation for FY27 at 4.6%. Governor Malhotra said global growth faces growing downside risks as the sharp jump in energy prices and input shortages stoke inflation fears.
He said the spike in energy prices from the conflict has emerged as a risk, though retail prices of petrol and diesel remain unchanged so far. On food, the governor said the outlook looks comfortable in the near term, supported by robust rabi production, adequate reservoir levels, and comfortable buffer stocks of food grains.
