RBI MPC Meet: RBI did not increase loan EMI, but inflation may increase in the country

The Reserve Bank of India, the country's central bank, announced its policy rate for the fiscal year 2027. For the second consecutive year, the RBI has kept the repo rate unchanged. 

Following this, the RBI's repo rate will remain at 5.25%. Previously, the RBI cut the repo rate by 0.25% in December, 

at a time when rising crude oil prices have led to a rise in inflation in the country. However, before the policy rate announcement, Trump announced a two-week ceasefire.

Iran also agreed to open the Strait of Hormuz. This led to a 19 percent drop in crude oil prices, with US crude prices falling to $91 per barrel. Experts believe that further declines in crude oil prices are possible. 

This impact was also felt in the country's stock market, with the Sensex rising by more than 2,700 points. Let us also tell you what kind of statement the RBI has issued regarding policy rates.

— ReserveBankOfIndia (@RBI) April 8, 2026

No change in repo rate

The country's central bank has kept the repo rate unchanged at 5.25% for the second consecutive time. Previously, in December, the RBI cut the repo rate by 0.25%. 

This means that the repo rate will be cut by 1.25% in 2025. Prior to the cut, the RBI had brought the repo rate to 6.50%. The first repo rate cut since RBI Governor Sanjay Malhotra assumed office was in February 2025. 

Experts believe the pause button may also be pressed on the upcoming policy rate. Meanwhile, RBI Governor Sanjay Malhotra announced that the Special Development Fund (SDF) rate will remain at 5% and the MSF rate will remain at 5.5%.

Inflation may increase

RBI Governor Sanjay Malhotra, after announcing the policy rate, said that rising crude oil prices could increase imported inflation and widen the current account deficit (CAD). He added that weak global growth prospects could slow external demand and reduce remittance flows. 

Sanjay Malhotra stated that high-frequency indicators through February point to continued strong momentum in economic activity. Governor Malhotra stated that the growth momentum is being supported by strong private consumption and persistent investment demand. 

Governor Malhotra stated that the MPC noted that the intensity and duration of the conflict, as well as potential damage to energy and other infrastructure, pose risks to both inflation and growth.

GDP growth forecast

The RBI has lowered its growth forecast. According to the RBI Governor, the country's growth is projected to be 6.8 percent in the first quarter, 6.7 percent in the second quarter, 7 percent in the third quarter, and 7.2 percent in the fourth quarter. 

However, the country's growth forecast for fiscal year 2027 is 6.9 percent. In the previous policy meeting, the first quarter was projected to be 6.9 percent and the second quarter was projected to be 7 percent.