RBI MPC Meeting 2026: Check Key Highlights

April 2026 meeting of the RBI MPC was held on April 6-8 and kept the repo rate constant at 5.25% despite global issues such as war in West Asia. 

The Monetary Policy Committee headed by Sanjay Malhotra, Governor of the RBI, met for the first bi-monthly discussion in FY 2026-27 from April 6 to 8. The results were presented at 10:00 AM on April 8, following which an explanation was given about economic conditions. All members of the six-member panel agreed on the robustness of the domestic economy in relation to external factors such as disrupted supply chains and commodity prices.

Key Decisions Made

• Rate repo unchanged at 5.25% through liquidity adjustment facility (LAF).

• Neutral monetary policy approach maintained.

• Reverse repo rate at 5.00%, MSF and Bank Rate at 5.50%, SDF rate at 5.00%.

Economic Projections

RBI forecasts real GDP growth at 6.9% for FY 2026-27 (down from 7.6% in FY 2025-26) and CPI headline inflation at 4.6% (within the 2-6% target band). Core inflation (excluding food and fuel) is projected at 4.4%. Projections account for strong macro fundamentals, remittances, and services exports offsetting trade deficits.

Inflation and Growth 

The upside inflation threats are escalation in West Asia that could take Brent crude prices to $80-$85 per barrel, possibility of El Nino making monsoons weak (with a 70% chance), and disruption in vegetable/grain supplies. On the growth side, the factors include domestic demand (contributing to about 60% to the GDP), revival of investments via the PLI route, and rural economic growth, while the drags include urban slowdown and higher real interest rates (repo rate less inflation being around 0.65%). 

As compared to the February 2026 (hold stance), April predictions factor in these new risks, but the RBI is optimistic about 7%+ medium term growth potential due to reforms.

Future MPC Schedule

Full FY26-27 calendar: June 3-5, August 3-5, October 5-7, December 2-4, 2026; February 3-5, 2027 (outcomes on last days at 10 AM). Detailed minutes for April meeting release April 22; resolution already public on rbi.org.in.

Implications

• Borrowers/Savers: No EMI relief; FDs yield 6.5-7.5% (attractive vs. 4.6% inflation).

• Markets: Sensex/Nifty dipped 0.5% post-announcement but recovered; 10-year G-Sec yield stable at 6.8-7%.

• Sectors: Autos/realty await cuts; exports (IT/pharma) benefit from rupee softness; banks see steady NIMs.
  Investors should track CPI (April data May 13), IIP, and US Fed moves for June pivot signals.