Highlights of RBI’s 1st Bi-Monthly Monetary Policy of FY27
The Reserve Bank of India (RBI) conducted the 60th and 1st Bi-monthly Monetary Policy Committee (MPC) meeting of Financial Year 2026-27 (FY27) from April 06, 2026 to April 08, 2026 under the chairmanship of Dr. Sanjay Malhotra, Governor, RBI.
The Reserve Bank of India (RBI) conducted the 60th and 1st Bi-monthly Monetary Policy Committee (MPC) meeting of Financial Year 2026-27 (FY27) from April 06, 2026 to April 08, 2026 under the chairmanship of Dr. Sanjay Malhotra, Governor, RBI.
- The meeting was attended by the MPC members: Dr. Nagesh Kumar, Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Indranil Bhattacharyya.
Key Outcomes:
Policy Rate:The MPC kept the repo rate unchanged under the Liquidity Adjustment Facility (LAF) to 5.25% and maintained a ‘Neutral ’policy stance, citing heightened uncertainty after West-Asia conflict which drove crude price sharply higher, weakened rupee and disrupted trade supply chain.
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- Consequently, the MPC retained the Standing Deposit Facility (SDF) rate at 5.00% and the Marginal Standing Facility (MSF) rate and the Bank Rate held at 5.50%.
GDP Growth Forecast: The committee has revised down India’s real Gross Domestic Product (GDP) growth forecast by 50 basis points (bps) for FY27 at 6.9% from its previous estimate of 7.4%.
Inflation Projection: The MPC projected Consumer Price Index (CPI) inflation at 4.6% for FY27, which is within a band of +/- 2%. It has also estimated core inflation at 4.4% for the current fiscal year.
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