Our Bureau
Mumbai
The Reserve Bank of India’s Monetary Policy Committee (MPC) on April 8, 2026, decided to keep the repo rate steady at 5.25 percent. Governor Sanjay Malhotra announced this after the three-day meeting from April 6 to 8, maintaining a neutral stance. This follows no changes in recent policies, after cuts totaling 125 basis points since February 2025, with the last 25 basis points in December 2025.
India faces pressures from the US-Iran war and global supply shocks, but the economy shows strength. Headline inflation rose to 3.2 percent in February 2026 from 2.7 percent in January, per the new CPI series. Still, RBI projects GDP growth at 6.9 percent despite shocks. Malhotra noted the banking system is resilient with strong capital and low NPAs for NBFCs.
No EMI relief for borrowers this time, as rates hold firm. Markets reacted positively, with Sensex crossing 77,000 on Iran ceasefire news. Governor said low rates may continue short to medium term if price pressures ease. He stressed vigilance on evolving situations to support growth and control inflation.
Malhotra highlighted robust exports and macroeconomic fundamentals backed by government steps. The Bank Rate stays at 5.50 percent. Next MPC meet is June 3 to 5, 2026. This cautious move balances inflation risks from oil prices and rupee pressures with domestic resilience.
