ANI
08 Apr 2026, 11:02 GMT+10
Mumbai (Maharashtra) [India], April 8 (ANI): The Reserve Bank of India on Wednesday kept the policy repo rate unchanged at 5.25 per cent in the first monetary policy announcement of the financial year 2026-27, citing rising global uncertainties and geopolitical tensions.
Announcing the decision, RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) unanimously voted to maintain the policy repo rate under the liquidity adjustment facility at 5.25 per cent.
Governor stated 'After the detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged under the liquidity facility at 5.25 per cent. Consequently, the SDR rate remains at 5 per cent and the MSF rate and the bank rate at 5.5 per cent'.
'Consequently, the Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the bank rate at 5.5 per cent,' he said.
The MPC meeting was held on April 6, 7 and 8 to assess the evolving macroeconomic and financial conditions before arriving at the decision.
The central bank noted that the policy comes at a time when the global economy is facing significant challenges due to heightened geopolitical tensions, particularly the ongoing conflict in West Asia, along with disruptions in global supply chains.
The RBI Governor said that before the outbreak of the conflict, India's macroeconomic fundamentals reflected strong growth and low inflation. However, conditions turned adverse in March as the conflict widened and intensified.
Despite these challenges, he emphasised that India's economic fundamentals remain strong and are better positioned compared to previous crisis periods and many other economies, providing resilience against global shocks.
He highlighted that global growth is facing downside risks due to rising energy prices and shortages of key inputs, which have increased inflation concerns and pushed up geopolitical risk premiums in oil markets.
Heightened uncertainty due to the conflict has also impacted financial markets globally. Safe-haven flows have strengthened the US dollar, putting depreciation pressure on currencies of major economies.
At the same time, commodity prices such as metals and gold have moderated, while financial markets have witnessed increased volatility. Equity markets have seen broad-based corrections, and sovereign bond yields have hardened due to inflation fears and concerns over long-term fiscal sustainability. (ANI)
Get a daily dose of Milwaukee Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Milwaukee Sun.
More InformationWASHINGTON, DC - In a stunning 11th hour development, former President Donald J. Trump has announced on Truth Social that he has suspended...
ISTANBUL, Turkey: Turkish police shot and killed one attacker in a gunfight outside a building housing the Israeli Consulate in Istanbul,...
KABUL, Afghanistan: Nearly 110 people have died from the extreme weather that has triggered widespread flooding and landslides in many...
WASHINGTON, D.C.: Detailing the mission to rescue the two-man fighter jet crew downed deep inside Iran, U.S. President Donald Trump...
TEHRAN, Iran - A historic synagogue in Tehran has been completely destroyed by U.S.-Israeli strikes that killed at least 15 people...
BEIJING, China: China has unveiled new guidance for its e-commerce sector, signalling a push to balance domestic growth with global...
MANAMA, Bahrain: A man detained in Bahrain last month as the island kingdom came under missile attack from Iran vanished for days,...
(Photo credit: John Jones-Imagn Images) E.J. Liddell scored 21 points to lead the Brooklyn Nets to a 96-90 victory over the visiting...
(Photo credit: Eric Canha-Imagn Images) Trevor Story snapped a scoreless tie with a bases-loaded double in the sixth inning, Garrett...
(Photo credit: Isaiah J. Downing-Imagn Images) The surging Denver Nuggets are fighting for the No. 3 seed in the Western Conference...
(Photo credit: Michael McLoone-Imagn Images) Tampa Bay Rays right-hander Drew Rasmussen will not start Tuesday's home game against...
(Photo credit: Nick King/Lansing State Journal / USA TODAY NETWORK via Imagn Images) The Wild have signed Minnesota native and 2023...
