RBI MPC Meeting Keeps Repo Rate Unchanged At 5.25% — What It Means For Your Portfolio

On 8 April 2026, the RBI MPC concluded its first bi-monthly policy meeting of FY2027, held from 6 to 8 April. With the RBI Governor, Sanjay Malhotra, announcing the policy at 10 AM today. As anticipated by the markets, the RBI has kept the Repo rate unchanged at 5.25% and maintained policy stance at ‘Neutral’. This was the second consecutive time the RBI MPC has decided not to change the Repo rate. This came after the RBI had already cut the repo rate by a cumulative 125 basis points since February 2025. 

The MPC Meeting has also analysed the damage from the conflict in West Asia to energy and other infrastructure, which adds risk to the rise of inflation and the growth outlook. In these geopolitical tensions, the Indian economy has shown better resilience to the global shocks than in the past. The MPC Meeting decided to wait and watch the changing circumstances and economic outlook before making any further changes in the Repo rate, hence voted to keep the rate of policy unchanged. 

Key Macro Numbers to Know

RBI MPC anticipated good economic growth for FY2027, and increased the Q1FY27 GDP growth forecast to 6.9% from 6.7%, and changed the expected increase for Q2FY27 from 6.8% to 7%. The RBI MPC also increased inflation expectations to 4.0% for Q1 FY27 and 4.2% for Q2 FY 27.

Another significant observation made by the Governor of the Reserve Bank of India was that greenfield FDI continues to be one of the top options for investors in India.

Stocks to Watch

Banking & NBFCs – The recent announcement by the RBI MPC on maintaining the repo rate is a perfect opportunity for lenders. As the rate of lending does not change, banks such as the State Bank of India, Kotak Mahindra Bank, and Mahindra Bank can have a comfortable NIM. Additionally, since the repo rate remains steady, there is no chance of increasing the deposit rate for banks.

Real Estate – When the RBI MPC announces a stable repo rate, real estate companies like DLF, Prestige Estates, and Godrej Properties can reap benefits due to steady housing demand, as the loan rate will remain stable. Stable bond rates promote the consumption-driven sector by providing a favorable environment for the investors. 

Automobile Sector – The auto sector also benefits from stable loan rates, as it helps sustain consistent customer demand. With no fluctuations in interest rates, customers can finance their vehicle purchases with greater confidence, without worrying about sudden changes in borrowing costs.

The Rupee Risk And What Investors Should Track

The rupee has weakened significantly in recent times, reaching a low of 95 per USD. A weak rupee leads to a rise in government bond yields, a huge cash outflow, and a widening of the current account deficit. These scenarios ultimately lead to pump inflation in the economy, and if inflation reaches the upper tolerance limit of 6%, the RBI MPC might consider a rate hike towards the end of the year. If this happens, it would sharply reprice banking, real estate, and auto stocks. 

Investors are advised to focus on fundamentally strong stocks for long-term investing. The change from the RBI MPC could impact the shares for a very short period, but investors cannot evaluate the stocks based on an unchanged repo rate only.

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FAQs

Will RBI cut repo rate again in 2026?

RBI may cut the repo rate again in 2026, but it is not certain, as it will mainly depend on inflation under control and the growth needed for support. If inflation rises again, the RBI MPC may pause the rate cut.

Who is the New Governer of RBI in 2026?

Sanjay Malhotra is the current head of the Reserve Bank of India. He is responsible for monetary policy, banking regulations, inflation, and overall country financial stability.

What is the date of the RBI MPC in April 2026?

The RBI Monetary Policy Committee announcement is on 8 April 2026. The MPC meeting dates are 6, 7, and 8 April 2026. The policy decision is being announced on 8 April 2026. 

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