Reserve Bank of India Announces April 2026
Monetary Policy Decisions
¨ The Reserve Bank of India
(RBI) has announced its monetary policy decisions for April 2026. As part of
this announcement, a decision was taken to maintain the repo rate at 5.25
percent. Consequently, the repo rate will remain at 5.25 percent for the time
being.
¨ The central bank cited
rising global uncertainties and geopolitical tensions as the primary reasons
behind this decision. This decision was announced by the central bank's
Governor, Sanjay Malhotra.
¨ He stated that the
Monetary Policy Committee (MPC) unanimously decided to maintain the repo rate
at 5.25 percent under the Liquidity Adjustment Facility (LAF).
What Did the RBI Governor State?
¨ RBI Governor Sanjay
Malhotra stated that the Monetary Policy Committee has decided to maintain a
'neutral' stance. He noted that the data regarding domestic inflation offers
some relief.
¨ Inflation remains under
control, and the growth outlook is also positive. However, the prices of food
items have risen slightly. He added that, amidst all global uncertainties, the
Indian economy continues to demonstrate resilience.
Revision in GDP Growth Forecast
¨ Exercising caution
regarding future growth projections, the RBI has revised its GDP growth
forecast for the financial year 2025-26 (FY26). The growth rate, which was
previously projected at 7.6%, has now been lowered to 7.3%.
¨ This revision has been
undertaken keeping in mind the potential impact of global uncertainties and
geopolitical tensions on the Indian economy.
