RBI Holds Repo Rate at 5.25% in First Policy Review of FY 2026-27

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New Delhi: The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent in its first monetary policy review of the financial year 2026-27. The decision was unanimously approved by the six-member Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra.

Governor Malhotra noted that the decision comes amid heightened global uncertainties and geopolitical tensions, particularly following the recent West Asia conflict. “After assessing evolving macroeconomic and financial conditions, the MPC voted unanimously to maintain the repo rate at 5.25 per cent. Consequently, the Standing Deposit Facility (SDF) remains at 5 per cent, while the Marginal Standing Facility (MSF) and bank rate stay at 5.5 per cent,” he said.

The announcement coincided with a US-Iran ceasefire, which triggered global market rallies and a gap-up opening in Indian indices. Despite risks from rising food and crude prices, potential widening of the current account deficit, and supply chain disruptions, RBI highlighted that India’s macroeconomic fundamentals remain strong, providing resilience against global shocks.

The MPC reviews key economic indicators every two months, and the central bank has previously kept the repo rate unchanged in August, October, and February 2026.

The RBI emphasized a “wait-and-watch” approach in the current uncertain scenario while monitoring inflation and global developments closely.

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