MONETARY POLICY OF APRIL 2026 AMIDST GEOPOLITICAL TENSIONS
POLICY RATES Monetary policy Committee (MPC) meeting held in April 2026 decided to retain policy rates maintaining the neutral policy stance due to heightened geopohaslitical uncertainties in West Asia. According to RBI Governor despite the impact of unprecedented geopolitical disturbances in Middle East and consequent supply chain disruptions the Indian economy remained on a stronger footing policy in comparison with earlier crisis episodes. Accordingly MPC decided to retain rates at the existing rates as -Repo rate at 5.25 ,Standing Deposit facility (SDF) rate 5.00%,Bank Rate and Marginal Standing Facility (MSF) rate both at 5.50% and Cash Reserve ratio (CRR) at 3%.RBIs GDP growth estimates indicated 6.9 % for the financial year 2026-27where in Q1 6.8%, Q2 6.7%,Q3 7.0% and Q4 7.2 % were estimated quarterly projections.Inflation projections indicated that for Fy 2026-27 CPI Inflation is estimated at 4.6% , likely to increase to 5.2% in Q3...