The Reserve Bank of India's Monetary Policy Committee (MPC) commenced its first bi-monthly monetary policy review of the financial year 2026-27 on April 7, 2026, under the chairmanship of RBI Governor Sanjay Malhotra. The three-day meeting, scheduled to conclude on April 9 with the policy statement, is closely watched as the first major signal on interest rates after a year in which the RBI cumulatively cut the repo rate by 125 basis points — from 6.50% to 5.25% — through 2025 to support growth. Most analysts expect the MPC to keep the repo rate unchanged at 5.25% with a neutral stance, balancing three considerations: (i) the resurfacing of inflation risks from rising global energy prices, (ii) global financial uncertainty affecting the rupee and capital flows, and (iii) reasonably stable domestic growth that does not demand further stimulus. Headline CPI inflation has stayed within the RBI's 2-6% tolerance band, but unseasonal hailstorms in Rajasthan, Punjab and Haryana have damaged ripening rabi crops and could push food inflation up in the coming months. Real GDP growth for FY 2026-27 is widely projected at around 6.9%. The decision will also indicate how the RBI navigates the impact of the recent India-US tariff deal that lowered American duties on Indian goods, and the new G-Sec yield environment. The current rates structure is Repo 5.25%, SDF 5.00%, MSF and Bank Rate 5.50%, CRR 0% and SLR 18.0%.