RBI MPC keeps repo rate unchanged at 5.25%

The Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the central bank’s policy rate will remain unchanged at 5.25%. The decision was announced on Wednesday (April 8, 2026), following the RBI monetary policy committee (MPC) meeting, where the unchanged rate was decided unanimously.

“The outbreak of the conflict in West Asia has led to severe disruption of global supply chains. This poses an unprecedented challenge for the global economy – higher prices and lower global growth,” the RBI said in a press release. “In this environment, monetary policy faces a difficult trade-off – anchoring inflation expectations through policy tightening while minimising its impact on growth forgone,” it added.

RBI MPC announcement updates on April 8, 2026 

Citing elevated energy and other commodity prices coupled with supply shock due to disruptions in the Strait of Hormuz, the RBI said these will act as a drag on domestic production in 2026-27. 

Real GDP growth for FY-27 has been projected at 6.9%, the RBI said, while it put the CPI inflation for FY27 at 4.6% as compared to earlier projection of 4.5% for the year.

Mr. Malhotra said that the fundamentals of the Indian economy remains on a strong footing, even as developments in West Asia are expected to widen Current Account Deficit