RBI MPC at a glance: Your one-stop guide for all key decisions

The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25% in its latest Monetary Policy Committee (MPC) meeting, maintaining a status quo approach amid global uncertainties.

• Repo rate unchanged at 5.25%
• Standing Deposit Facility (SDF) rate retained at 5%
• Marginal Standing Facility (MSF) rate and Bank Rate held at 5.5%

The decision was announced by RBI Governor Sanjay Malhotra.

Read more: RBI MPC Highlights

Economic Outlook: Growth Supported by Domestic Demand

The RBI highlighted that India’s economic activity remains strong, supported by key domestic factors.


Read more: MPC Live Updates

“High-frequency indicators up to February indicate sustained strength in economic activity,” Malhotra said.

“Growth impulses remain supported by robust private consumption and sustained investment demand.”

“Urban consumption is likely to strengthen further aided by the beneficial impact of GST rationalisation and the buoyant services sector.”

• Growth driven by strong private consumption
• Investment demand remains steady
• Urban consumption expected to strengthen further

Inflation Trends: Easing but Risks Remain

Governor Malhotra noted that inflation has eased since the October policy, but cautioned against emerging risks.

• Inflation has moderated in recent months
• Upside risks remain due to global developments

“Elevated crude oil prices could increase imported inflation and widen the current account deficit.”

Global Risks: West Asia Conflict and Oil Prices

The MPC flagged rising global uncertainties as a key concern.

“The intensity and duration of the conflict, along with possible damage to energy and other infrastructure, pose risks to both inflation and growth outlooks.”

“Potential disruptions in the Strait of Hormuz could weigh on growth in the current year.”

• Ongoing West Asia conflict poses risks
• Energy market disruptions could impact growth

External Sector Concerns

The RBI cautioned that global developments may affect India’s external position.

“Weaker global growth prospects may dampen external demand and reduce remittance flows.”

• Export demand may weaken
• Remittance flows could be affected

GDP Growth Projections: Moderation Expected

The central bank expects a slight moderation in growth.

“Under the revised GDP series, real GDP growth for the previous year is pegged at 7.6 per cent.”

• FY26 GDP growth estimated at 7.6%
• FY27 GDP growth projected at 6.9%

Inflation Outlook: CPI Seen at 4.6%

The RBI has projected inflation to remain within a manageable range.
FY27 CPI inflation projected at 4.6%

Quarterly Inflation Estimates

• Q1: 4.0%
• Q2: 4.4%
• Q3: 5.2%
• Q4: 4.7%

Banking System and Business Sentiment

The Governor pointed to improvements in the financial system and overall sentiment.

“The government has taken proactive steps to ensure the availability of key inputs across critical sectors, helping contain supply chain disruptions.”

“Business sentiment continues to remain optimistic.”

• Banking system efficiency has improved
• Business sentiment remains positive