RBI keeps repo rate unchanged at 5.25% in April 2026 review

The Reserve Bank of India's Monetary Policy Committee (MPC) concluded its first bi-monthly meeting of FY 2026-27 on 8 April 2026 and chose to keep the policy repo rate unchanged at 5.25%. The decision was unanimous. The MPC also retained its monetary policy stance as "neutral", signalling that future moves will be data-dependent.

The Standing Deposit Facility (SDF) rate stays at 5.00% and the Marginal Standing Facility (MSF) and Bank Rate at 5.50%. Governor Sanjay Malhotra chaired the panel. The MPC flagged heightened global geopolitical risks, particularly the situation in West Asia, as the principal reason for caution. It noted that the present shock is largely supply-side driven, and a rate move would do little to address it.

Real GDP growth for 2026-27 has been projected at 6.9% and headline CPI inflation at 4.6%, both broadly aligned with the central bank's medium-term targets. The MPC retained its inflation tolerance band of 4% (+/- 2%). The next meeting is scheduled for 3-5 June 2026.

The decision matters for borrowers as well as savers. Home loans and EMI-linked retail credit, which are mostly tied to the External Benchmark Lending Rate (EBLR), will see no immediate change in rates. Bond yields softened mildly after the announcement as markets had priced in a status-quo move.

Exam angle: Banking and SSC aspirants should note: repo rate 5.25%, SDF 5.00%, MSF/Bank Rate 5.50%, CRR and SLR unchanged. The MPC is a 6-member statutory body under Section 45ZB of the RBI Act, 1934, with three external members and three from the RBI; the Governor has a casting vote in the event of a tie. CPI target band: 4% (+/- 2%).