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RBI Monetary Policy Review - April 2026

A Neutral Hold: MPC’s calm amid chaos
10 April 2026
    Local Market Commentary
    Download the full reportPDF, 185.25KB

    RBI Monetary Policy Review - April 2026

    The MPC in a unanimous vote decided to maintain a pause on the Repo Rate at 5.25 per cent while maintaining a neutral stance.

    • The RBI-MPC maintained a calm demeanor amid a chaotic environment. The policy statement reinforces that India is at a good starting point and thus, better equipped to navigate the current external headwinds/shock. Based on our analysis and assumptions, we believe that the RBI MPC is likely to maintain a long pause on policy rates while keeping the liquidity conditions in sufficient surplus
    • The external environment would continue to shape and influence the policy dynamics. At this juncture, we believe that the Repo Rate stays at 5.25 per cent throughout CY26 and the risks of rate hikes in CY27 would start building up if oil prices/energy shock persist, and if weather-related risks seep into prices. At this juncture, to us, it looks like a long pause on policy rates

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