No relief from costly loans, RBI keeps repo rate unchanged
RBI keeps repo rate unchanged at 5.25% in April 2026 policy, offering no relief on loan EMIs amid global economic uncertainties.
New Delhi (The Uttam Hindu): The Reserve Bank of India (RBI) has announced its April 2026 monetary policy decision, keeping the repo rate unchanged at 5.25%. The move was largely in line with market expectations, as the six-member Monetary Policy Committee (MPC) approved the decision unanimously after two days of deliberations. The central bank aims to maintain economic stability amid prevailing global uncertainties.
RBI Governor Sanjay Malhotra stated that the bank rate and Marginal Standing Facility (MSF) rate remain unchanged at 5.50%, while the Standing Deposit Facility (SDF) rate has been retained at 5.00%. The decision comes at a time when global economic conditions continue to remain challenging.
The Governor described 2025 as a difficult year but noted that inflation has eased since the October policy review. He highlighted the improved efficiency of the banking system as a key support for the economy.
Notably, this announcement came shortly after Donald Trump declared a two-week ceasefire with Iran, which created a positive sentiment in global markets and led to a rally in Indian equities.
The RBI has projected India’s real GDP growth at 6.9% for the current financial year. However, the Governor cautioned that global uncertainties—particularly rising tensions in West Asia and elevated crude oil prices—could put pressure on growth. He emphasized that external factors remain a significant risk to India’s economic outlook.