The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25% while continuing with the neutral stance.
Consequently, the standing deposit facility (SDF) rate remains at 5%, and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50%.
“The MPC noted that since the last policy meeting, external headwinds have intensified, though the successful completion of trade deals augurs well for the economic outlook. Overall, the near-term domestic inflation and growth outlook remain positive,” RBI Governor Sanjay Malhotra said.
On the domestic front, real gross domestic product (GDP), as per the First Advance Estimates (FAE), is estimated to grow at 7.4 per cent (y-o-y) in 2025-26.
The revised outlook for CPI inflation in Q1:2026-27 and Q2 at 4% and 4.2%, respectively, continues to be benign and near the inflation target.
The slight upward revision in the inflation outlook is primarily due to an increase in the prices of precious metals, which contribute about 60-70 basis points. The underlying inflation continues to be low, the Governor said.
CPI inflation for 2025-26 is now projected at 2.1% with Q4 at 3.2%. CPI inflation for Q1:2026-27 and Q2 are projected at 4% and 4.2%, respectively, he added.
Governor Malhotra also said that for customer protection, we will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorized electronic banking transactions.
It is also proposed to introduce a framework to compensate customers up to an amount of Rs 25000/- for loss incurred in small-value fraudulent transactions.
The next meeting of the MPC is scheduled for April 6 to 8, 2026.