RBI Maintains Steady Repo Rate Amid Inflation Concerns in April 2026 Meeting
RBI MPC Meeting 2026 LIVE: Sanjay Malhotra-led MPC likely to keep repo rate steady amid inflation worries
Mint
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The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, is expected to keep the repo rate steady at 5.25% during its April 2026 monetary policy meeting. This decision comes amid rising inflation concerns due to geopolitical tensions and fluctuating crude oil prices.
- 01RBI likely to maintain repo rate at 5.25%.
- 02Geopolitical tensions from the US-Iran conflict affecting economic stability.
- 03Inflation expectations raised for Q1 and Q2 FY27.
- 04Previous repo rate cuts totaled 125 basis points since February 2025.
- 05GDP growth forecast for Q1 FY27 increased to 6.9%.
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The Reserve Bank of India (RBI) is set to announce its monetary policy decision today, April 8, 2026, during its first bi-monthly meeting for FY27. Led by Governor Sanjay Malhotra, the Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged at 5.25% amid rising inflation concerns influenced by the ongoing US-Iran war, which has led to increased crude oil prices and a depreciating rupee. The RBI has already cut the repo rate by a total of 125 basis points since February 2025. Economists predict a cautious tone from the MPC, especially with inflation estimates for Q1 FY27 raised to 4.0% and for Q2 FY27 to 4.2%. Additionally, the GDP growth forecast for Q1 FY27 has been increased to 6.9%. Market participants are keenly awaiting the RBI's insights on growth and inflation expectations to gauge future monetary policy direction.
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The decision to maintain the repo rate at 5.25% is likely to stabilize borrowing costs for consumers and businesses, potentially influencing home loan EMIs and other credit rates.
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