RBI Policy April 2026 Meeting Live: The Reserve Bank of India (RBI) is set to announce its latest monetary policy decision on today, April 8, following the end of the Governor Sanjay Malhotra-led Monetary Policy Committee’s (MPC) three-day meeting held from April 6. The rate-setting panel, chaired by Governor Sanjay Malhotra, meets every two months to review key economic indicators and determine the policy stance.
This policy review comes at a time of heightened global uncertainty, largely driven by escalating tensions in West Asia. The ongoing conflict involving the United States and Iran has disrupted critical energy supply routes, particularly the Strait of Hormuz, triggering a sharp spike in crude oil prices. Although a temporary two-week ceasefire has been agreed upon, easing some immediate concerns, the broader economic impact continues to weigh on global and domestic markets. Rising oil prices have already begun to ripple through the Indian economy. The country, which relies heavily on imports for its energy needs, is particularly vulnerable to supply disruptions. A significant portion of its crude imports passes through the Strait of Hormuz, making any blockage or slowdown in that corridor a direct risk to supply and costs. As prices surged, the rupee weakened sharply, while equity markets saw heightened volatility alongside notable foreign investor outflows.
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The impact is not limited to currency and markets. Higher fuel costs are feeding into broader inflationary pressures and raising input costs across multiple sectors, including aviation and hospitality. Air India on Tuesday had raised its fuel surcharge for the second time since the war began on February 28. Concerns are also emerging around supply chains, especially for fertilisers and other critical imports from the Gulf region. At the same time, uncertainties in the Middle East could affect remittance flows, which form an important part of India’s external inflows.
RBI has a balancing act at hand
At such a time, the RBI faces a complex balancing act. On one hand, rising crude prices risk pushing inflation higher, which could warrant tighter monetary policy. On the other, slowing growth momentum may call for a more accommodative approach to support economic activity. Most economists expect the MPC to keep the repo rate unchanged at 5.25% and maintain its ‘neutral’ stance. The central bank has already reduced rates by a cumulative 125 basis points since February 2025 and has held them steady in recent reviews. Given the current uncertainty, a pause is widely seen as the most likely outcome, with policymakers expected to adopt a cautious tone.
In its previous policy, the RBI had expressed confidence in economic resilience, revising its near-term growth projections slightly upward. It had also flagged a gradual firming up of inflation in early FY27. However, the evolving global situation has altered the outlook significantly, with risks to both growth and price stability becoming more pronounced.
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