The Reserve Bank of India (RBI) on Friday kept key policy rates unchanged in the final Monetary Policy Committee (MPC) meeting of the financial year 2025–26, opting for continuity amid evolving macroeconomic conditions. The MPC unanimously voted to retain the repo rate at 5.25%, signalling a cautious approach as the central bank balances inflation risks with economic growth.
Announcing the decision, RBI Governor Sanjay Malhotra said the MPC met over three days — April 4, 5 and 6 — to assess domestic and global economic developments before arriving at its policy decision. With the repo rate unchanged, the Standing Deposit Facility (SDF) rate remains at 5%, while the Marginal Standing Facility (MSF) rate and the bank rate continue at 5.5%.
The central bank also decided to maintain a neutral policy stance, indicating flexibility to respond to future economic data without committing to either a rate hike or a cut. The decision comes at a time when global financial markets remain volatile and central banks worldwide are closely monitoring inflation trends, geopolitical risks and growth prospects.
Market participants will now closely track RBI’s forward guidance and upcoming macroeconomic data to gauge the timing and direction of any future policy moves, especially as India heads into the next financial year.
