The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep the key repo rate unchanged at 6.5%, as announced on April 5, 2026. This marks the seventh consecutive meeting where the central bank has held the rate steady. The decision was widely anticipated by economists and markets.
In its statement, the MPC noted that headline inflation remains above the 4% target, though it has moderated from previous highs. The committee reiterated its stance of "withdrawal of accommodation" to ensure inflation aligns with the target while supporting growth. The RBI's policy stance and commentary are being closely watched for signals on the future path of interest rates, particularly for the 2026-27 fiscal year.
The central bank's decision comes amid global economic uncertainty and persistent inflationary pressures. The MPC's actions are focused on anchoring inflation expectations while monitoring the impact of geopolitical tensions and domestic food price volatility on the economic outlook.
