RBI MPC Meeting 2026 Highlights: Sanjay Malhotra-led MPC keeps repo rate unchanged at 5.25%; FY27 inflation seen at 4.6%

RBI MPC Meeting Highlights: Key takeaways from April RBI monetary policy

Here are key takeaways from April RBI monetary policy today:

1] Policy Measures

• Repo rate unchanged 5.25%
• Policy stance maintained at ‘Neutral’
• CRR at 3%
• SDF rate at 5.00%
• MSF rate at 5.50%
• Bank Rate at 5.50%
• MPC members unanimously voted for status quo on rates

2] GDP Growth Estimates

RBI projects FY27 GDP growth at 6.9%. Here are quarterly projections:

• Q1FY27: Cut to 6.8% from 6.9%
• Q2FY27: Cut to 6.7% from 7%
• Q3FY27: At 7%
• Q4FY27: At 7.2%

3] CPI Inflation Forecast

RBI forecasts CPI inflation for FY27 at 4.6%, and core inflation at 4.4%. Here are quarterly estimates:

• Q1FY27: Maintained at 4.0%
• Q2FY27: Raised to 4.4% from 4.2%
• Q3FY27: At 5.2%
• Q4FY27: At 4.7%

4] Additional Measures

• RBI to alter guidelines for inclusion of quarterly profits in CRAR computation for commercial banks
• RBI to do away with IFR requirements for banks
• To review matters placed before the Boards of the Banks
• Onboarding process of MSMEs in TReDS to be simplified
• AIFIs, NBFCs, HFCs allowed to participate in term money market segment
• Borrowing limit in the term money market for standalone primary dealers to be enhanced

5] The minutes of the MPC meeting will be published on April 22, 2026

6] The next RBI MPC meeting is scheduled from June 3 to 5, 2026

RBI Monetary Policy Meeting LIVE: Yield curve expected to continue its steepening bias: Basant Bafna

Going forward, expectations remain for a prolonged pause in policy rates with the yield curve expected to continue its steepening bias going forward with the 1-3 year segment remaining attractive as spreads of ~225-250 bps above overnight rates remain higher vis-à-vis historical averages, said Basant Bafna, Head - Fixed Income, Mirae Asset Investment Managers (India).

RBI MPC Meeting LIVE: RBI’s stance reinforces stability while ensuring growth engine stays on track: Atul Monga

In the home loan segment, the unchanged repo rate translates into continued stability in lending rates, particularly for floating rate loan borrowers. This is critical for both first-time homebuyers and existing homeowners as it preserves affordability and supports demand in the housing market. Overall, the RBI’s stance reinforces stability while ensuring the growth engine stays on track, said Atul Monga, CEO & Co-Founder, BASIC Home Loan.

RBI Monetary Policy Meeting LIVE: Space for at least 50 bps repo rate hike over next 12 months: Gaurav Kapur of IndusInd Bank

The status quo on the policy rate and continuation of a Neutral stance in the MPC meeting are along the expected lines. The baseline assessment of headline and core inflation, with a balance of risks to the upside, suggests there is space for at least 50 bps repo rate hike over the next 12 months, while continuing with a Neutral stance. The actual outturn of inflation, which, among other things, will depend upon the pass-through of the oil price shock to the end-consumers, will guide the policy rate trajectory ahead. RBI’s real GDP growth forecast of 6.9%, with risks to the downside, accounts for the resilience of the momentum driven by domestic drivers, even as external sector drag is likely to weigh on growth, said Gaurav Kapur, Chief Economist, IndusInd Bank.

RBI MPC Meeting LIVE: Government policies to provide stability to prices may moderate impact on CPI inflation: Dk Srivastava of EY India

RBI’s April 2026 monetary policy review provides an assessment of the impact of the West Asian crisis on India’s growth and inflation. Given the required time lag for the global crude supply situation to normalize even if the crisis is resolved in the near future, there is a likelihood of average global crude price exceeding $95/bbl in 2026-27. In such a scenario, India’s growth may be lowered further and inflation may be higher than the baseline projections. Government policies to provide stability to prices may, however, moderate the impact on CPI inflation to some extent, said Dk Srivastava, Chief Policy Advisor, EY India.

The Monetary Policy Committee has not changed either the repo rate or the policy stance. It is only appropriate to wait for the next review meeting’s assessment of the situation regarding the crude price movements and its impact on inflation, he added.

RBI Monetary Policy Meeting LIVE: Stable interest rates likely to support sustained housing demand: Tribhuwan Adhikari

Today’s RBI MPC decision to keep the repo rate unchanged at 5.25% was largely in line with market expectations and reflects a calibrated approach towards balancing growth and inflation. The steady policy environment provides much-needed visibility to both lenders and borrowers, said Tribhuwan Adhikari, MD & CEO of LIC Housing Finance.

The unchanged rate regime is positive as it helps preserve affordability for homebuyers, especially in the affordable and mid-income segments. Stable interest rates, coupled with improving economic fundamentals are likely to support sustained housing demand across markets. We expect this policy continuity to further strengthen buyer sentiment and encourage fence-sitters to move ahead with their home purchase decisions, he added.

RBI MPC Meeting LIVE: Attractiveness of India as an investment destination is going to increase this year: RBI Dy Governor Poonam Gupta

The relative attractiveness of India as an investment destination is going to increase this year because of three factors. One is that the valuations have become more attractive. Exchange rates make investments into the country more attractive, and a higher nominal GDP growth will help with earnings as well. So this year is looking quite promising, said RBI Deputy Governor Poonam Gupta.

RBI Monetary Policy Meeting LIVE: CBDC is an innovation whose time has come: RBI Dy Governor

CBDC is an innovation whose time has come. It is the future of payments. We are gradually moving towards it, getting the technology right, getting the used cases right. We are developing programmability. There are a total of 1 crore users now and total transactions are around 10 crore, said RBI Deputy Governor T Rabi Shankar.

RBI MPC Meeting LIVE: RBI FX curbs on positions of banks, NDFs will not be permanent: Governor

The central bank’s recent curbs on position limits of lenders and barring them from offering non‑deliverable forwards, aimed at reining in rupee volatility, will not remain in place indefinitely, Governor Sanjay Malhotra said on Wednesday.

In a post-monetary policy briefing, Malhotra said the central bank had observed heightened volatility in the foreign exchange market in recent weeks, with banks building positions, including arbitrage trades between the onshore deliverable and offshore NDF markets.

RBI Monetary Policy Meeting LIVE: FPI flows to come to India as macroeconomic fundamentals strong: RBI Governor

FPI flows are volatile. They flow where they can make short-term money. The macroeconomic fundamentals of India are very strong. So it’s only a matter of time, whatever it is, FPI or FII should come to India. Those who are patient and want to make long term money will come to India, said Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: Not anticipating a dent to remittances: Dy Governor Poonam Gupta

Our remittances come from a diverse set of regions in which the share of the Gulf countries has declined over time… We are not anticipating a dent to remittances if the crisis is going to be resolved very soon, said RBI Deputy Governor Poonam Gupta.

RBI Monetary Policy Meeting LIVE: Excessive speculation on rupee was artificially drying up supply: RBI Deputy Guv

Excessive speculation on rupee was artificially drying up supply in the market: RBI Deputy Governor T Rabi Sankar on recent direction to banks.

RBI MPC Meeting LIVE: No material concerns on governance: RBI Governor on HDFC Bank issue

There are no material concerns on governance and conduct noticed during supervisory inspection, RBI Governor Sanjay Malhotra said on the exit of HDFC Bank’s part-time Chairman, Atanu Chakraborty.

RBI Monetary Policy Meeting LIVE: New framework on NBFC categorisation soon: RBI Governor

We are soon coming up with a new framework on categorisation of NBFCs into upper, middle and other layers, said RBI Governor.

RBI MPC Meeting LIVE: No systematic risks in banks: RBI Governor

We are not seeing systematic risks on the banks side with regard to their profitability and health due to the supply chain disruptions caused by West Asia war, said RBI Governor.

RBI Monetary Policy Meeting LIVE: Forex measures not going to remain forever: RBI Guv

On the recent regulatory measures that we took with regard to the foreign exchange markets, you are all aware, and you may not have witnessed, but we did notice that in the last few weeks of last month, March, there was heightened volatility in the Forex markets. We saw that positions were being built up, leading to arbitrage positions between the non-deliverable forward markets and the deliverable markets. In normal times, these linkages are important for efficient price discovery, and that's why it has been our endeavour to make these markets more liquid. But when there is excessive volatility, when there is excessive building up of positions, it is only you know increasing volatility and perhaps not helping in price efficient price discovery, such kind of measures are taken, said RBI Governor Sanjay Malhotra.

He added, “These are reactions to the specific market movements. There are not in any sense signalling any structural change. We stand committed long-term to the development, broadening and deepening of these markets to the internationalisation of the rupee. These are not measures which are going to remain there forever.”

RBI MPC Meeting LIVE: RBI Governor on structural change in policy

On being asked about structural change in policy, RBI Governor Sanjay Malhotra said, “This has been a request which has been there from the market participants and so, we thought that this was the right time to do it. Because we did the five-yearly review. So we thought that this is the time if we have to do something about it and give our projections on core. That's why these numbers have been given. Monetary policy is not a pre-set course of action. As I have stated earlier also that a mentioned that headline is our target. We have to ensure, that it's headline, that remains at target and within the band. That's the goal, that's the primary goal for us. But at the same time, the various components of inflation, and where they are emanating from, are also very important. So that has been the consistent policy of the Monetary Policy Committee, and of the RBI."

RBI Monetary Policy Meeting LIVE: RBI expects crude oil prices to average $85 per barrel in FY27 and $75 next year

RBI baseline assumption for crude oil price has been taken at $85 per barrel for FY27 and $75 per barrel for FY28, said RBI Governor.

RBI MPC Meeting LIVE: India’s macroeconomic fundamentals are strong: RBI Guv

The Indian economy is very strong and very resilient. India’s macroeconomic fundamentals are strong, keeping in mind the various measures taken by the government. We are projecting GDP at 6.9%, said RBI Governor Sanjay Malhotra.

RBI Monetary Policy Meeting LIVE: It is possible that we continue to have low repo rates: RBI Governor

It is possible that we continue to have low repo rates in short to medium term, said RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: RBI Governor on forex market volatility

We did notice that in the last few weeks there was heightened volatility in the forex market. We saw that positions were being built up, leading to arbitrage positions between the non deliverable forward markets and the deliverable markets…. When there is excessive building up of positions and perhaps not helping in price discovery, such kinds of measures are taken… Forex market measures are not going to be there forever, said RBI Governor Sanjay Malhotra.

RBI Monetary Policy Meeting LIVE: Pleasant news, but not surprising: RBI Governor on US-Iran ceasefire

At 5.30 AM, we got “pleasant news, but not something surprising”, RBI Governor Sanjay Malhotra said on the US-Iran ceasefire deal.

RBI MPC Meeting LIVE: Core inflation print a request by market participants: Malhotra

Core inflation print has been a request by market participants, said RBI Governor Malhotra

RBI Monetary Policy Meeting LIVE: MPC not in position to say what it will do in next meeting: RBI Governor

Monetary Policy Committee is not in a position to say what it will do in the next meeting, said RBI Governor Malhotra.

RBI MPC Meeting LIVE: Ultimate target is headline inflation, not anything else: RBI Governor Sanjay Malhotra

The various components of inflation and where they are emanating from, are also very important…. The ultimate target is headline inflation and not anything else, says RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: RBI Governor begins post-policy press conference

RBI Governor Sanjay Malhotra begins his post-policy press conference

RBI Monetary Policy Meeting LIVE: RBI proposes to ease banks’ capital adequacy needs

RBI proposed to ease banks’ capital adequacy norms by doing away with the requirement for lenders to maintain an investment fluctuation reserve (IFR).

“In view of the developments in the prudential framework over the years, it is proposed to dispense...IFR as an additional buffer,” Reserve Bank of India Governor Sanjay Malhotra said in his monetary policy speech.

The Reserve Bank of India also proposed to relax norms for banks to calculate the capital to risk-weighted assets ratio using quarterly earnings.

Banks currently maintain IFR as an additional buffer against depreciation in the value of their investments, subject to mark-to-market (MTM) requirements.

RBI MPC Meeting LIVE: MPC’s commitment to stay proactive and pre-emptive in liquidity support provides comfort: Crisil economist

The MPC’s clear commitment to stay proactive and pre-emptive in liquidity support provides comfort. Financial markets have responded more to global market volatility than what the real sector indicators have shown so far. The RBI has demonstrated its ability to tame excessive volatility using multiple instruments, ranging from open market operations to regulatory measures in the forex market. It has kept systemic liquidity in surplus till date despite volatile foreign capital flows, said Dipti Deshpande, Principal Economist, Crisil Ltd.

RBI Monetary Policy Meeting LIVE: RBI raised Q2FY27 CPI estimates to 4.4% from 4.2% earlier

RBI projected CPI inflation for FY27 at 4.6%. The central bank maintained Q1FY27 CPI projection at 4.0%, while raising Q2FY27 CPI estimates to 4.4% from 4.2% earlier. Q3FY27 and Q4FY27 CPI inflation projections stood at 5.2% and 4.7%, respectively.

RBI MPC Meeting LIVE: Forex intervention only to curb volatility not targeting specific level of Rupee: RBI Governor

The Reserve Bank of India reiterated that its intervention in the foreign exchange market is aimed solely at curbing excessive volatility and not at targeting any specific level of the rupee.

Speaking during the monetary policy announcement, RBI Governor, Sanjay Malhotra said, “Despite the stronger macroeconomic fundamentals, the Indian rupee in the last financial year depreciated more than average in the previous year.... our exchange rate policy remains unchanged. Specifically, intervention in the foreign exchange market is aimed at smoothing excessive and disruptive volatility without targeting any specific level or band of price for the exchange rate.”

RBI Monetary Policy Meeting LIVE: This could be the end of the rate cut cycle: Naveen Kulkarni

The RBI’s decision to maintain the repo rate and its Neutral stance did not come as a surprise and was already priced in. For now, we believe this could be the end of the rate cut cycle, and the RBI will pause rates from here. Although a 2-week ceasefire has been announced, risks persist, posing a downward risk to GDP growth estimates and an upward revision risk to inflation estimates. The RBI has already revised its Q1/Q2 inflation/GDP estimates to reflect the dynamic geopolitical risks. However, any further escalation in the West Asia conflict that negatively impacts inflation or GDP estimates could possibly prompt the regulator to reverse the rate cycle earlier than anticipated, said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

RBI MPC Meeting LIVE: RBI cuts GDP projections for Q1 and Q2 of FY27

RBI projects FY27 GDP growth at 6.9%. Here are quarterly projections:

Q1FY27: Cut to 6.8% from 6.9%

Q2FY27: Cut to 6.7% from 7%

Q3FY27: At 7%

Q4FY27: At 7.2%

RBI Monetary Policy Meeting LIVE: Repo rate pause provides some relief as imported inflation pressures are lower for India: Brickwork Ratings

For India, the repo rate pause provides some relief, as imported inflation pressures are lower for now while domestic demand stays strong. By maintaining a neutral stance, the MPC has signalled flexibility to act decisively should the geopolitical shocks or commodity price swings return. Stability in the policy rate helps keep borrowing costs predictable and supports credit flows to households and businesses. Looking ahead, much will depend on how global conditions evolve. If oil stabilizes and inflation eases further, the RBI may gain room to support growth more actively in the coming quarters, said K. H. Patnaik, Chief Ratings Officer, Brickwork Ratings.

RBI MPC Meeting LIVE: RBI policy mix appears neutral to marginally supportive for equities, fixed income, forex market: Sujan Hajra

RBI decision was largely in line with expectations. From here, the RBI is likely to continue with a data-dependent approach, suggesting an extended pause in rates. The broader policy stance is also likely to remain neutral, although liquidity conditions may continue to be managed in an accommodative manner. Overall, this policy mix appears neutral to marginally supportive for equities, fixed income and the foreign exchange market, said Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group.

RBI Monetary Policy Meeting LIVE: RBI simplifies onboarding process of MSMEs in TReDS

In order to promote ease of doing business for MSMEs and to encourage their greater participation on Trade Receivables Discounting System (TReDS), RBI proposed to dispense with the requirement of due diligence of MSMEs while onboarding on TReDS platforms. A comprehensive review of other extant instructions has also been undertaken, and draft directions will be issued shortly for public consultation.

RBI MPC Meeting LIVE: RBI allows NBFC, AIFs, housing finance companies to participate in term money market

At present, only banks and standalone primary dealers are eligible to participate in the term money market, with certain prudential limits. With a view to further enhance the depth of participation and liquidity in the term money market segment, RBI has decided to expand the participant base in the term money market segment to include non-bank participants viz., AIFIs, NBFCs, including housing finance companies, companies, etc.

RBI also enhanced the borrowing limit in the term money market for standalone primary dealers.

RBI MPC Meeting LIVE: India’s CAD likely to moderate and within sustainable level in FY26: RBI Governor

India’s merchandise exports contracted by 0.2% during January-February 2026 on a year-on-year (y-o-y) basis, impacted by export contraction in key markets. Merchandise imports recorded a double-digit growth of 22.2%, largely driven by higher gold imports, resulting in a widening of the trade deficit.

Expected robustness in services exports and inward remittance receipts during Q4:2025-26 should keep India’s current account deficit moderate and within the sustainable level in 2025-26. Rising global uncertainties and elevated prices of key energy commodities pose some upside risks to India’s current account deficit in 2026-27, said RBI Governor Sanjay Malhotra.

RBI Monetary Policy Meeting LIVE: MPC highlights downside risks to domestic growth

Further escalation of the conflict, its continuation over a wider geographical spread and uncertainty regarding the damage to the energy infrastructure, apart from weather related events, pose downside risks to the domestic growth outlook, MPC statement said.

RBI MPC Meeting LIVE: Fundamentals of Indian economy on a stronger footing: MPC

The MPC noted that the intensity and the duration of the conflict in West Asia and the resultant damage to the energy and other infrastructure add risk to the inflation and growth outlooks. However, the fundamentals of the Indian economy are on a stronger footing, providing it with greater resilience to withstand shocks now than in the past. The economy is confronted with a supply shock. It is prudent to wait and watch the changing circumstances and the evolving growth-inflation outlook.

RBI Monetary Policy Meeting LIVE: FY27 CPI inflation estimated at 4.6%

RBI projects CPI inflation for FY27 at 4.6%. Here are quarterly estimates:

Q1FY27 at 4.0%

Q2FY27 at 4.4%

Q3FY27 at 5.2%

Q4FY27 at 4.7%

RBI MPC Meeting LIVE: Elevated energy, commodity prices likely to impact growth this year: RBI Guv Malhotra

The real GDP growth for last year is estimated at 7.6%. This corroborates the underlying strong momentum in economic activity supported by robust consumption and investment amidst supportive policy measures, ongoing structural reforms and favourable financial conditions. Going forward, elevated energy and other commodity prices as also shocks to the availability of inputs due to disruptions in the Strait of Hormuz, are likely to impact growth this year. The government has been proactive in ensuring the supply of inputs across critical sectors to minimise the impact of supply chain disruptions. On the other hand, sustained momentum in the services sector, the persisting impact of GST rationalisation which was carried out last year and the healthy balance sheets of financial institutions and corporates should continue to support economic activity, said RBI Governor Sanjay Malhotra.

RBI Monetary Policy Meeting LIVE: Sensex, Nifty, Bank Nifty trade higher

The Indian stock market traded with strong gains amid the announcement of the RBI policy. The Sensex jumped 2,659.11 points, or 3.56%, to 77,275.69, while the Nifty 50 was trading 785.05 points, or 3.40%, higher at 23,908.70. The Bank Nifty index jumped 2,635.10 points, or 5.00%, to 55,351.35.

RBI MPC Meeting LIVE: RBI announced three measures to promote ease of doing business

RBI Governor announced three measures to promote ease of doing business

- To facilitate better utilisation of bank boards time.

- A similar consolidation exercise (to the master circular of 9,000 regulatory instructions into 238 master directions) has been done for supervisory instructions

- To facilitate ease of doing business by MSMEs

RBI Monetary Policy Meeting LIVE: System liquidity stood at an average daily surplus of ₹2.3 lakh crore: RBI Guv

System liquidity, as measured by the net position under the LAF, stood at an average daily surplus of ₹2.3 lakh crore since the last MPC meeting. G-SEC yields remained largely rangebound with a softening bias in February, but thereafter, on account of the ongoing conflict, they hardened as in the global yields along with the rise in energy prices. Transmission in the credit market has remained satisfactory to ensure sufficient liquidity in the banking system. Going ahead, we will continue to be proactive and preemptive in liquidity management and ensure sufficient liquidity in the banking system to meet the productive requirements of the economy, said RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: Here are policy rates after today’s RBI policy

Here are policy rates after today’s RBI policy

• Repo rate unchanged 5.25%; Policy stance maintained at ‘Neutral’; MPC members unanimously voted for status quo on rates.
• CRR at 3%
• SDF rate at 5.00%
• MSF rate at 5.50%
• Bank Rate at 5.50%

RBI Monetary Policy Meeting LIVE: RBI projects India’s GDP growth to be 6.9% in FY27

RBI projects India’s GDP growth to be 6.9% in FY27. Here are quarterly projections:

• Q1FY27 at 6.8%
• Q2FY27 at 6.7%
• Q3FY27 at 7%
• Q4FY27 at 7.2%

RBI MPC Meeting LIVE: India remains attractive destination for greenfield FDI projects: RBI Governor

India remains attractive destination for greenfield FDI projects, said RBI Governor Sanjay Malhotra

RBI Monetary Policy Meeting LIVE: CPI inflation for FY27 projected at 4.6%

RBI projected CPI inflation for FY27 at 4.6%

RBI MPC Meeting LIVE: Real GDP growth for FY27 estimated at 6.9%

RBI estimates real GDP growth for FY27 at 6.9%

RBI Monetary Policy Meeting LIVE: Fundamentals of Indian economy on a stronger footing: RBI Guv

The upside risks to inflation have increased, said RBI Governor Malhotra. However, he added that the fundamentals of the Indian economy are on a stronger footing.