RBI Keeps Repo Rate At 5.25%; 5 Key Takeaways From April MPC Decision

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Last Updated: 8th April 2026 - 05:49 pm

Summary:

The RBI kept the repo rate unchanged at 5.25% on April 8, with the monetary policy centred on five key takeaways covering the stance, inflation, growth, and the liquidity framework.

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In its official announcement, the Reserve Bank of India (RBI) announced that the repo rate would be kept unchanged at 5.25%. This is because the Monetary Policy Committee (MPC) is still maintaining a 'neutral' position.

The announcement came as a result of the meeting of the Monetary Policy Committee (MPC), which took place from April 6 to April 8, 2023.

5 Key Takeaways From RBI MPC Decision

Repo Rate And Stance Unchanged: Same Repo Rate and Stance: The MPC left the repo rate unchanged at 5.25%, for the second meeting on the trot, with the neutral stance being maintained, following its decision from February 2026, based on the RBI’s data.

Expected Inflation Rate at 4.6%: The expected inflation rate in FY27 was 4.6%, remaining within the band of 2% to 6%. Inflation is forecasted quarter-wise at 4% for Q1, 4.4% for Q2, 5.2% for Q3, and 4.7% for Q4.

GDP Growth Rate Expected to be 6.9%: It was expected that FY27 would see real GDP growth of 6.9%. In terms of quarters, 6.8% growth was expected in Q1, 6.7% in Q2, 7% in Q3, and 7.2% in Q4 as per the RBI.

Liquidity Management: In the liquidity management framework, the SDF and MSF rate were maintained at 5% and 5.5%, respectively, while the bank rate was kept at 5.5%.

First MPC Meeting of FY27: This was the first MPC meeting in FY27, conducted by the Reserve Bank of India.

Policy Continuity

The RBI has previously left the repo rate stable at 5.25% in February 2026 due to the reduction in interest rates throughout 2025. This policy decision follows a similar trend to the previous one.

The most recent policy statement provides a detailed analysis of the RBI's stance regarding interest rates, inflation, and economic growth in fiscal year 2027.

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