New Delhi, 08 April (H.S.):

The Reserve Bank of India kept its key policy repo rate unchanged at 5.25% on Wednesday, opting for monetary stability in the first Monetary Policy Committee review of fiscal year 2026-27.

Unanimous MPC Decision

Governor Sanjay Malhotra announced the unanimous verdict following the three-day deliberations, maintaining a neutral stance despite global headwinds. This follows the February 2026 MPC meeting where the rate was last held steady after a cumulative 125 basis points of cuts since February 2025—the final reduction occurring in December 2025.

West Asia Fallout Cited

Malhotra highlighted supply chain disruptions from the Iran conflict, noting India's relatively resilient economic foundation compared to peers, though inflation risks have resurfaced. He emphasized prioritizing growth-supportive measures over rate reductions in this environment.

Repo Rate Explained

The repo rate represents the interest charged by RBI on short-term loans to commercial banks, directly influencing borrowing costs, EMIs, savings yields, and investment flows across the economy.

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Hindusthan Samachar / Jun Sarkar