RBI MPC Meeting Live Updates

RBI MPC Meeting Live Updates: MPC Holds Repo Rate At 5.25%; FY27 Inflation At 4.6%

RBI MPC Meeting 2026, Repo Rate Today Live Updates: The Reserve Bank of India (RBI) will announce its latest monetary policy decision today after the conclusion of its three-day Monetary Policy Committee (MPC) meeting from April 06 to April 08. RBI Governor Sanjay Malhotra will announce the policy rate decision at 10 am today.

The policy comes amid rising inflationary pressures, driven by elevated global commodity prices and ongoing oil and gas turmoil due to Iran-US war.

The central bank has already reduced the repo rate by a cumulative 125 basis points to 5.25% since February 2025, in a bid to support economic momentum. However, it has opted to hold rates steady in the last three MPC meetings, signalling a cautious approach amid evolving macroeconomic conditions.

Most analysts expect the RBI to maintain status quo in this policy as well, while closely monitoring inflation trends and global developments before taking any further action. The central bank’s commentary on inflation outlook, liquidity conditions, and growth projections will be equally important for market direction.

The next meeting of the Monetary Policy Committee is scheduled for June 3 to 5, 2026.

The Reserve Bank of India’s Monetary Policy Committee (MPC) on April 8 decided to keep the repo rate unchanged at 5.25 percent, continuing its pause on rate action. The decision reflects a cautious approach by the central bank, balancing relatively stable domestic inflation trends with rising global uncertainties, including geopolitical tensions and volatile commodity prices. A pause in the repo rate typically translates into stability in deposit interest rates. Since banks use the policy rate as a benchmark for pricing loans and deposits, the unchanged rate means there is little immediate pressure to revise fixed deposit (FD) rates.

1. To facilitate better utilisation of bank boards time.

2. A similar consolidation exercise (to the master circular of 9,000 regulatory instructions into 238 master directions) has been done for supervisory instructions

3. To facilitate ease of doing business by MSME

RBI Guv Sanjay Malhotra: System liquidity, as measured by the net position under the LAF stood at an average daily surplus of 2.3 lakh crore rupees

RBI Guv Sanjay Malhotra: India’s external sector indicators remain favorable, nonetheless elevated global geopolitical Trade Investment uncertainties requires a continuous vigil of the evolving developments

RBI Guv Sanjay Malhotra: G-SEC yields remained largely range bound with a softening bias in February, but thereafter, on account of the ongoing conflict, they hardened

RBI Guv Sanjay Malhotra: Transmission in the credit market has remained satisfactory to ensure sufficient liquidity in the banking system.

RBI Guv Sanjay Malhotra: Going ahead, we will continue to be proactive and preemptive in liquidity management and ensure sufficient liquidity in the banking system to meet the productive requirements of the economy.

We will ensure sufficient liquidity in the banking system to meet productive requirements of the Indian economy
– RBI Chief Malhotra said during the MPC statement

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group.

By underscoring upside risks to inflation and downside risks to growth, driven mainly by global uncertainties and especially the hostilities in West Asia, the Reserve Bank of India’s Monetary Policy Committee chose to maintain the status quo on both the policy rate and the policy stance. The decision was largely in line with expectations. From here, the RBI is likely to continue with a data-dependent approach, suggesting an extended pause in rates. The broader policy stance is also likely to remain neutral, although liquidity conditions may continue to be managed in an accommodative manner. Overall, this policy mix appears neutral to marginally supportive for equities, fixed income and the foreign exchange market.

The decision to keep the repo rate unchanged, largely in line with expectations, definitely reinforces a supportive environment for the real estate sector in a volatile global environment. Real estate investments remain the most desired due to their strong base and reliability factor. Homebuyers are currently driven by long-term confidence rather than short-term rate fluctuations. However, we are hopeful of a rate cut in the near future as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy. Moreover, the government’s continued push on infrastructure growth strengthen the long-term outlook for the sector. Overall, a stable interest-rate environment will play a crucial role in sustaining homebuyer confidence throughout the year. The real estate sector has shown resilience with strong sales, and supportive monetary policy and measured approach will only accelerate its upward trajectory. The unchanged policy stance is set to keep the real estate sector’s growth momentum on track.

Ramani Sastri – Chairman & MD, Sterling Developers

RBI Guv Sanjay Malhotra: Global Trade is expected to witness a slowdown in growth during 2026 as compared to 2025 due to the lingering tariff related uncertainties despite the supreme court judgment

RBI Guv Sanjay Malhotra: India’s merchandise exports contracted by 0.2% during the first two months of this year, on a year on year basis.

RBI Guv Sanjay Malhotra: Gross FDI witnessed a strong growth, almost about 20% growth in net

RBI Guv Sanjay Malhotra: Intervention in the foreign exchange market is aimed at smoothing excessive and disruptive volatility, without targeting any specific level or band or price for the exchange rate

Q1: 4%
Q2: 4.4%
Q3: 5.2%
Q4: 4.7%

Net FDI showed improvement on small base of last year. India remains attractive destination for greenfield FDI projects.

The Reserve Bank of India’s Monetary Policy Committee (MPC) on April 8 held the the repo rate at 5.25 percent, continuing its pause after a series of rate cuts over the past year. For home loan borrowers, the decision signals stability. Since most home loans are linked to benchmarks such as the repo rate, an unchanged policy rate means EMIs will to remain steady in the near term. Banks are also expected to hold lending rates, unless there is a shift in liquidity conditions or policy stance.

Likely emergence of El Niño conditions could be a risk, says Malhotra

RBI Guv Sanjay Malhotra: Growth for q1 at 6.8% q2 at 6.7% q3 at 7% and q4 at 7.2%

RBI Guv Sanjay Malhotra: The agricultural sectors, prospects are supported by healthy reservoir levels

RBI Guv Sanjay Malhotra: Private consumption this year to be supported by discretionary spending

RBI Guv Sanjay Malhotra: Rural demand remains robust

RBI Guv Sanjay Malhotra: Urban consumption is likely to strengthen further aided by the beneficial impact of GST rationalization and the buoyant services.

RBI Guv Sanjay Malhotra: The revival in private sector investment is expected to sustain on the back of high capacity utilization, strong credit growth and benign financial

India’s economic growth is expected to be 6.9 per cent in the first quarter of FY27. RBI estimates Q2 GDP growth at 6.8 per cent and 6.7 per cent for the third quarter.

In the last MPC meeting, the Reserve Bank of India projected India’s economic growth for the first two quarters of FY27 at 6.9% and 7%, respectively.

RBI Guv Sanjay Malhotra: As per the new GDP series. Real GDP growth for last year is estimated at 7.6%

RBI Guv Sanjay Malhotra: Disruptions in the Strait of Hormuz is likely to impact growth this year

RBI Guv Sanjay Malhotra: This year, the government has, however, been proactive in ensuring supply of inputs across critical sectors to minimize the impact of supply chain disruptions.

RBI Guv Sanjay Malhotra Business expectations remain optimistic

SDF remains at 5%, MSF rate at 5.5%, announces RBI Governor Sanjay Malhotra

Global growth faces increasing downside risks as the sharp rise in energy prices and shortages of inputs have stoked inflation fears, Governor Malhotra said.

Before the outbreak of the West Asia conflict, india’s macroeconomic fundamentals, exuded confidence

The RBI has reduced interest rates by a total of 125 basis points since February 2025, with the last cut delivered in December 2025. Since then, markets have largely priced in a prolonged pause, contingent on global economic developments.

Economist at Barclays expects the Reserve Bank of India to persist with bond purchases, short-term liquidity injections and longer-term foreign-exchange swap operations.

“We expect the RBI to continue injecting abundant liquidity into the system, ensuring easy financial conditions to help the economy tide over the shock,” Aastha Gudwani, chief India economist at Barclays told Reuters.

Indian equity benchmarks surged over 3 percent at the open on Wednesday, with the Sensex soaring over 2,500 points and the Nifty jumping more than 750 points, as a US-Iran ceasefire triggered a global risk-on rally and a steep fall in crude oil prices.

Dipti Deshpande, Principal Economist at Crisil, said that if inflation remains close to the Monetary Policy Committee’s target, the RBI may choose to look through the supply-side shock and maintain a status quo on interest rates. Economists note that while retail inflation has eased toward the RBI’s medium-term target of 4%, the recent spike in global crude oil prices has raised concerns about second-round effects on domestic inflation, particularly across fuel, transport, and core segments.

Soumya Kanti Ghosh, Chief Economist at State Bank of India, said that while announcing a pause, the RBI is likely to adopt a cautious communication strategy. He noted that India is already facing the impact of the crisis, with the rupee trading above 93 per dollar and crude oil prices staying above $100 per barrel, contributing to rising imported inflation. He also warned that the expected “super El Niño” could further add pressure on prices.

RBI Policy, Repo Rate Today Live Updates: Indian benchmark indices opened with a sharp gap-up on Wednesday, tracking strong global cues after easing geopolitical tensions. The Nifty 50 surged over 735 points, or 3.18 per cent, to trade at 23,859 in early deals, after opening near the day’s high of 23,938. Meanwhile, the BSE Sensex rallied 2,615 points, or 3.51 per cent, to 77,232, reflecting broad-based buying across sectors. The rally comes after a strong indication from Gift Nifty and upbeat trends across Asian markets, following the announcement of a 15-day ceasefire between the US and Iran.

The momentum was visible across the board, with banking, metal and IT stocks leading the gains amid improved risk sentiment and a sharp correction in crude oil prices.

RBI Policy, Repo Rate Today Live Updates: The Indian rupee strengthened by 36 paise to open at 92.64 against the US dollar on Wednesday, ahead of the RBI’s policy announcement, supported by a sharp fall in crude oil prices following the US-Iran ceasefire deal. The easing in oil prices, which had been a key pressure point for the currency, lifted sentiment and helped the rupee recover from recent lows amid improved global risk appetite.

RBI MPC Meet, Repo Rate Today Live Updates: We expect RBI to reflect a cautious tone on inflation but also be cognizant of growth dynamics in the country which have recently stabilised post GST rationalisation and monetary support. It is important to note that domestic yields are already under pressure and closer to 2024 levels, when RBI was on a long pause and repo was at 6.5%, restrictive enough to contain inflation shocks. Therefore, we expect RBI to maintain the status quo on policy rates. We also expect RBI to reiterate its commitment to maintaining adequate liquidity to support the needs of the economy. However, the RBI will probably be strategic in its liquidity infusion measures given near term pressure on the currency, said Prashant Pimple, CIO – Fixed Income at Baroda BNP Paribas Mutual Fund.

RBI Policy, Repo Rate Today Live Updates: The Indian rupee is expected to open higher on Wednesday ahead of the RBI policy decision, buoyed by a crash in crude oil prices and the rally in Asian currencies after the US and Iran agreed for a two-week ceasefire.

The rupee is likely to open in the 92.40-92.50 range versus the US dollar, having settled at 93.0075 on Tuesday, according to a Reuters report.

RBI Policy, Repo Rate Today Live Updates: Vishal Goenka, Co-Founder, IndiaBonds.com, argued that if the current situation persists, the RBI may eventually have to consider a combination of rate action and tighter liquidity measures. He noted that such a move could trigger further pressure on risk assets and push up short-term yields, though it may also serve as a pre-emptive response to rising inflation risks.

RBI Policy Meet, Repo Rate Today Live Updates: The Indian stock market is expected to open higher on Wednesday ahead of the announcement of RBI policy today. A rally in global markets following the US-Iran two-week ceasefire deal is likely to support sentiment in the domestic equities. The trends on Gift Nifty also signal a gap-up start for the benchmark indices, Nifty 50 and Sensex today. Gift Nifty was trading around 23,801 level, a premium of nearly 650 points from the Nifty futures’ previous close.

RBI Policy Meet, Repo Rate Today Live Updates: In the last MPC, RBI governor Sanjay Malhotra noted that the Indian economy continues to register high growth despite a challenging external environment clouded by geopolitical uncertainties.

“Benign inflation provides the leeway to remain growth-supportive while preserving financial stability,” he said, adding that the central bank remains committed to meet the productive requirements of the economy and sustaining the growth momentum.

RBI Policy Meet, Repo Rate Today Live Updates: For commercial real estate, steady interest rates and borrowing costs support sustained leasing momentum and long-term investment decisions, thereby increasing demand for office space and supporting new developments. Easier credit availability attracts both individual and institutional investors, driving real estate growth. The RBI in the previous MPC announcement has been supportive of Real Estate Investment Trusts (REITs) allowing them to borrow directly from banks, although with specific safeguards. Hence, we expect a rate cut to have a pronounced impact on the real estate sector, easing borrowing costs and improving credit availability, leading to consumer demand to pick up significantly.

Manas Mehrotra, Founder, 315Work Avenue, a leading coworking player

Real estate investments remain the most desired due to their strong base and reliability factor. Hence, we look forward to a supportive stance from the RBI in the upcoming monetary policy announcement. We are hopeful of a rate cut as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy. A stable interest-rate environment will play a crucial role in sustaining homebuyer confidence throughout the year. The real estate sector has shown resilience with strong sales, and supportive monetary policy and measured approach will only accelerate its upward trajectory.

Ramani Sastri – Chairman & MD, Sterling Developers

Source: News18
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