RBI keeps repo rate unchanged; Projects India’s real GDP growth for current fiscal at 6.9%

Delhi | April 8, 2026: The Reserve Bank of India has kept interest rates unchanged at 5.25 percent. Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra today said that the Monetary Policy Committee has unanimously decided to retain the repo rate at 5.25 per cent with a neutral stance.

Consequently, the standing deposit facility rate remains at 5 per cent and the marginal standing facility rate and the Bank Rate remains at 5.50 per cent.

Bi-monthly Meeting of the committee began on Monday under the chairmanship of the Governor.

Monetary policy Committee has also expected that the GDP for the last financial year will be at 7.6 percent while for the current fiscal year, it will be at 6.9 per cent. RBI has projected that CPI inflation for the current financial year will be at 4.6 percent.

Mr Malhotra said, ‘Persistently elevated energy prices due to the West Asia conflict and possible El Niño conditions pose upside risks to inflation.’

On the West Asia conflict, RBI has taken a wait-and-watch approach, citing the changing circumstances and the evolving growth-inflation outlook.

Accordingly, the Monetary Policy Committee voted to keep the policy rate unchanged even as it remains vigilant, closely monitoring incoming information and assessing the balance of risks.

Governor said that the West Asia conflict will adversely impact growth. He added that higher input costs associated with an increase in energy prices and international freight and insurance costs, along with supply-chain disruptions, could constrain the availability of key inputs for downstream sectors, thus impairing growth.

He added that the fundamentals of the Indian economy are on a stronger footing, providing it with greater resilience to withstand shocks now than in the past.

He said that several measures taken by the government, targeted at supporting exports and protecting supply chains, should mitigate the adverse impact of the conflict.

Governor has noted that, despite stronger macroeconomic fundamentals, the Indian rupee in 2025-26 depreciated more than the average in the previous years.

He reiterated that the exchange rate policy remains unchanged. He added that intervention in the foreign exchange market is aimed at smoothening excessive and disruptive volatility without targeting any specific level or band for the exchange rate.

Mr. Malhotra said, this is consistent with our long-standing policy of the exchange rates being market-determined.

The RBI stands committed to this policy and would judiciously contain excessive or disruptive volatility to ensure that self-fulfilling expectations do not exacerbate currency movements beyond what is warranted by fundamentals, he added.

- Newsonair

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