The Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the central bank’s policy rate will remain unchanged at 5.25%. The decision was announced on Wednesday (April 8, 2026), following the RBI monetary policy committee (MPC) meeting, where the unchanged rate was decided unanimously. Citing elevated energy and other commodity prices coupled with supply shock due to disruptions in the Strait of Hormuz, the RBI said these will act as a drag on domestic production in 2026-27. Real GDP growth for FY-27 has been projected at 6.9%, the RBI said, while it put the CPI inflation for FY27 at 4.6% as compared to the earlier projection of 4.5% for the year. Mr. Malhotra said that the fundamentals of the Indian economy remain on a strong footing, even as developments in West Asia are expected to widen the Current Account Deficit.

Source: The Hindu April 08, 2026 17:10 UTC