The Reserve Bank of India’s Monetary Policy Committee (MPC), in its 60th meeting today, on April 8, 2026, voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25%.
The standing deposit facility rate stayed at 5.00 per cent, while the marginal standing facility rate and the bank rate remained at 5.50 per cent. The committee also retained a neutral stance, saying the West Asia conflict has worsened the growth-inflation outlook and made a “wait and watch” approach more prudent.
The RBI’s tone was cautious rather than alarmist, in the policy statement, it said headline inflation was still below target, but the outlook had become less certain because of higher energy prices, supply disruptions and the risk of wider spillovers from the conflict.
The central bank also said core inflation remained muted, although it flagged possible second-round effects if input costs stay elevated.
Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank, said, “The RBI’s decision to keep the repo rate unchanged at 5.25% reflects a balanced and ‘safety-first’ approach, prioritising macroeconomic stability. While the Indian economy continues to demonstrate strong growth at 7.6%, a cautious stance is warranted amid evolving global uncertainties, particularly geopolitical tensions in West Asia and volatility in crude oil prices. By maintaining the rates steady, the RBI is reinforcing the sustainability of the ongoing recovery while ensuring predictability in borrowing costs which is a welcome relief for both households as well as businesses.“
On growth, the RBI projected real GDP expansion of 6.9 per cent for 2026-27. It broke that down at 6.8 per cent for Q1, 6.7 per cent for Q2, 7.0 per cent for Q3 and 7.2 per cent for Q4. The bank also noted that India’s real GDP for 2025-26 is estimated at 7.6 per cent, with domestic demand and fixed investment supporting activity despite weaker external demand.
The repo rate path over the past year has been clearly one-way until this pause. RBI cut the rate by 25 basis points to 6.25 per cent in February 2025, reduced it again by 25 basis points to 6.00 per cent in April 2025, delivered a larger 50 basis point cut to 5.50 per cent in June 2025, and then trimmed it by 25 basis points to 5.25 per cent in December 2025. The February 2026 meeting held the rate steady before today’s April pause.
The RBI also said it would stay proactive in liquidity management and continue intervening in the foreign exchange market only to smooth excessive volatility, not to defend any fixed rupee level.
They added that measures would be announced to improve the ease of doing business, support capital adequacy, and develop the term money market. The minutes of the meeting are due on April 22, 2026, and the next MPC meeting is scheduled for June 3 to 5, 2026.
[ Related Post: RBI MPC Meeting, February 6, 2026: A Pause with Purpose ]
