In its April 2026 monetary policy, the Reserve Bank of India (RBI) has opted to maintain the repo rate at 5.25% while keeping the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) at 5.5% and 5%, respectively. This decision reflects the RBI's cautious stance amid rising global uncertainties, particularly from geopolitical tensions in West Asia that have driven up energy prices and disrupted supply chains. The RBI has projected consumer price index (CPI) inflation at 4.6% for FY27, with core inflation expected around 4.4%. The central bank has also revised its inflation estimates upwards, citing the impact of increasing oil and commodity prices and potential El-Nino conditions affecting food production. On the growth front, the RBI maintains a positive outlook, projecting 6.9% GDP growth for FY27, although near-term estimates for the first two quarters have been slightly reduced due to global slowdown concerns. The RBI's commitment to proactive liquidity management aims to ensure sufficient liquidity to support credit flow to businesses and consumers. Additionally, regulatory measures to ease capital adequacy requirements and support the micro, small, and medium enterprises (MSME) sector are expected to enhance the ease of doing business. Overall, the RBI's policy reflects a careful balance between controlling inflation and supporting growth, ensuring that India remains stable amidst rising global risks.