RBI Policy: The Reserve Bank of India has announced its latest monetary policy. This time, the central bank has not made any changes to interest rates. The RBI has decided to keep the repo rate unchanged at 5.25 percent. Since February 2025, the Reserve Bank has already made a total reduction of 125 basis points.

It is worth noting that this monetary policy meeting was held after the Budget 2026-27 and the trade deal between India and the US. RBI Governor Sanjay Malhotra said that inflation is currently under control and the country’s economy remains in a strong position.

No Change in MSF and SDF Rates

The RBI Governor informed that the central bank has kept the Marginal Standing Facility (MSF) rate at 5.50 percent and the Standing Deposit Facility (SDF) rate at 5.00 percent, as before. No changes have been made to these rates either.

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Why did the RBI not cut interest rates?

While giving details of the monetary policy, Governor Sanjay Malhotra said that the Monetary Policy Committee unanimously decided to keep the repo rate stable for now. He said that the RBI’s focus will now be more on liquidity management.

The Governor also stated that the impact of the previous interest rate cuts is clearly visible on banks’ lending rates. While a total reduction of 125 basis points was made, the average lending rates of scheduled commercial banks have declined by approximately 105 basis points.

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What did the RBI say about GDP?

The Reserve Bank has not yet released the full-year GDP estimate for the financial year 2027. This has been postponed until the next monetary policy meeting in April. The Governor said that the full-year estimate will be shared only after the new GDP series is released.

However, the growth forecast for the near future has been increased. The RBI has projected real GDP growth at 6.9 percent for the first quarter of the financial year and 7.0 percent for the second quarter.

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Adarsh P

Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...

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