New Delhi: The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent in its latest Monetary Policy Committee (MPC) meeting, maintaining a status quo tideway tween global uncertainties.
RBI Governor Sanjay Malhotra spoken that the Monetary Policy Committee had decided to alimony the repo rate unchanged. The EMI on your home loan, car loan, or other loans linked to the repo rate will not increase, which ways that you won't have to pay higher installments on these loans.
What did the RBI Governor say?
Sanjay Malhotra stated that the Monetary Policy Committee has decided to maintain a neutral stance.
"On the domestic inflation front, there are encouraging figures. Inflation is under control, and the growth outlook is positive. However, supplies prices have risen slightly," he said.
The RBI Governor said that the Indian economy remains resilient tween global uncertainties.
Did interest rates come down?
The first Monetary Policy Committee meeting of the new fiscal year, chaired by Reserve Bank of India Governor Sanjay Malhotra, concluded.
During the three-day meeting (April 6-8), the committee members unanimously decided to alimony the key interest rate, the repo rate, stable at 5.25 per cent.
All 33 economists tracked by Bloomberg had previously predicted that the RBI would alimony rates unchanged, based on assessments of global and domestic conditions.
Since February 2024, the RBI has cut rates by a total of 125 understructure points. The last reduction was recorded in December 2025.
Is it a relief news on the inflation front?
Governor Sanjay Malhotra expressed snooping well-nigh headline CPI (retail inflation). MPC members believe that an upside risk remains on the inflation front. Average inflation is projected to be 4.6 per cent for fiscal year 2026-27. On a quarterly basis, it is expected to be 4 per cent in Q1, 4.4 per cent in Q2, 4.2 per cent in Q3, and 4.7 per cent in Q4.
What is the revision in GDP growth estimates?
Real GDP growth for this year is projected at 6.9 per cent, with Q1 at 6.8, Q2 at 6.7 per cent, Q3 at 7 per cent, and Q4 at 7.2 per cent, Malhotra said.
The RBI has revised its GDP growth forecast for fiscal year 2025-26 (FY26) with circumspection regarding future growth projections. The growth rate, previously unscientific at 7.6 per cent, has now been reduced to 7.3 per cent. This revision was made to worth for the potential impact of global uncertainties and geopolitical tensions on the Indian economy.
What is the impact of Middle East tensions?
The MPC meeting expressed deep snooping well-nigh the ongoing mismatch in West Asia. The Governor clarified that while India's economic fundamentals are strong, the intensity and elapsing of the mismatch could impact India's GDP growth. According to the MPC, forfeiture to infrastructure and disruptions to the transplanted oil supply uniting due to the mismatch could increase inflation and hinder growth.
