The Reserve Bank of India has kept the policy repo rate unchanged at 5.25% in its first monetary policy announcement for the financial year 2026–27. The decision was announced by RBI Governor Sanjay Malhotra following a detailed assessment of global and domestic economic conditions. The Monetary Policy Committee (MPC) unanimously voted to hold rates steady, citing rising global uncertainties, particularly geopolitical tensions in West Asia.
Despite challenges such as disruptions in global supply chains and elevated energy prices, the RBI emphasized that India’s economic fundamentals remain robust. The central bank noted that while global risks persist, the domestic growth outlook continues to show resilience. The MPC also stated that the Standing Deposit Facility (SDF) rate will remain at 5%, while the Marginal Standing Facility (MSF) rate and the Bank Rate are unchanged at 5.5%.
The RBI’s decision reflects a cautious approach amid ongoing global volatility, with a focus on balancing inflation risks while supporting economic growth. The move is expected to provide stability for borrowers and offer clarity to financial markets as policymakers navigate an uncertain external environment.
