RBI MPC 2026: Repo rate unchanged at 5.25%, maintains neutral stance

The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent in its recently concluded monetary policy committee (MPC) meeting. The central bank maintained its neutral stance, RBI Governor Sanjay Malhotra said. 

He said that the STF rate also remains unchanged at 5 per cent. The MPC also decided to keep the MSF rate and the bank rate unchanged at 5 per cent. 

Furthermore, the RBI boss said that the disruptions in global energy markets and fertilisers may adversely impact India's fiscal deficit. He also said that weaker global growth prospects might dampen external demand and reduce remittance flows. 

"Heightened uncertainties and increased risk aversion could impact domestic liquidity conditions," he added.

Malhotra mentioned that heightened uncertainty, precipitated by the ongoing conflict, is weighing on the economic outlook. He added that the global economy is facing unprecedented challenges, adding that safe-haven flows have extended depreciation pressures on currencies of major economies. 

He said that before the West Asia conflict broke out, India's macroeconomic fundamentals exuded confidence with buoyant growth and low inflation. 

"Conditions, however, turned adverse in March with the widening of the conflict zone and its intensification. The fundamentals of the Indian economy are on a stronger footing at the current juncture than it was in previous crisis episodes, as well as relative to many other economies, providing it with greater resilience to withstand shocks."

The central bank has slashed policy rates by 125 basis points since February 2025. 

As of February 2026, the central bank kept the repo rate at 5.25 per cent, maintaining a neutral stance to balance inflation and growth.