RBI presents first monetary policy for the financial year 2026-27
Mumbai, April 8. The Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, announced on Wednesday that there would be no change in the policy repo rate during the first monetary policy review of the current financial year.
After a three-day meeting of the Monetary Policy Committee (MPC), it was unanimously decided to maintain the repo rate at 5.25 percent. The Governor stated that the MPC has maintained a 'neutral' stance, which means that the Standing Deposit Facility (SDF) will remain at 5.00 percent and the bank rate at 5.50 percent. This decision comes at a time when global economic uncertainties and geopolitical tensions are at their peak.
The Governor specifically mentioned the ongoing conflict in West Asia (Israel-Iran-America), which has increased pressure on global supply chains and crude oil prices. He acknowledged that volatility in global financial markets has increased since March, but emphasized that India's economic fundamentals are significantly stronger compared to other countries. The Reserve Bank has projected the country's GDP growth for the financial year 2026-27 at 7 percent and the inflation rate at 4.5 percent.
The main objective of the RBI is to bring inflation down to a sustainable level of 4 percent, for which the bank remains fully vigilant. The decision to keep the repo rate unchanged has provided relief to the common man, as there will be no increase in EMIs for home loans, car loans, and personal loans at this time. However, those expecting a reduction in interest rates will have to wait longer, as the bank has not indicated any plans to lower rates.
Interest rates for fixed deposits (FD) will also remain at the current levels. Experts believe that given the global crisis and inflation, the RBI's 'wait and watch' approach will help maintain stability in the market.
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