The Reserve Bank of India kept the repo rate unchanged at 5.25% during its April 2026 Monetary Policy Committee meeting.
Governor Sanjay Malhotra announced that the six-member panel unanimously voted to maintain a neutral stance.
The decision comes after the RBI cut rates by 125 basis points since February 2025, marking its most aggressive easing cycle since 2019. The last reduction of 25 basis points occurred in December 2025, followed by a pause in February 2026.
Global developments shaped the April policy review. A surprise ceasefire in the Iran conflict, brokered by Donald Trump, triggered a sharp fall in oil prices. However, uncertainty over the truce’s durability continues to weigh on markets. Elevated crude prices earlier in the year and volatile capital flows have pressured the rupee, which has weakened nearly 3% in 2026.
Malhotra emphasised that inflation risks, liquidity management, and currency stability remain key concerns. The RBI has intervened in currency markets to ease volatility, but the rupee’s trajectory remains tied to global macroeconomic conditions.
The central bank’s neutral stance signals flexibility in responding to evolving challenges. With geopolitical shocks and inflationary pressures still looming, the RBI aims to balance growth support with price stability.
The April 2026 RBI MPC meeting underscores the delicate task of steering monetary policy amid extraordinary global uncertainty.
