Economy & Business
The first policy of 2026-27: repo rate held at 5.25 per cent
The MPC held the repo rate at 5.25% on 8 April 2026 and projected 6.9% growth and 4.6% inflation for 2026-27.
The Monetary Policy Committee's 60th meeting, from 6 to 8 April 2026 — the first of 2026-27 — unanimously kept the repo rate at 5.25 per cent with a neutral stance.
The Reserve Bank projected growth for 2026-27 at 6.9 per cent and CPI inflation at 4.6 per cent, higher than in 2025-26, citing energy prices and supply disruption from the conflict in West Asia, and possible El Niño conditions, as upside risks to inflation. On the new CPI series, inflation had risen to 3.2 per cent in February 2026.
Test yourself
Question 1
In April 2026, what CPI inflation did the Reserve Bank project for 2026-27?
- A2.0 per cent
- B3.2 per cent
- C4.6 per cent
- D6.9 per cent
Show the answer and explanation
Correct answer: C
Explanation
The projection for 2026-27 was 4.6 per cent.
6.9 per cent is the growth projection, and 3.2 per cent the February 2026 reading.
- Concept
- RBI inflation projection for 2026-27
- Typical time
- 50 seconds
- Written from
- rbi.org.in
Question 2
What real GDP growth did the Reserve Bank project for 2026-27 in April 2026?
- A6.2 per cent
- B6.9 per cent
- C7.3 per cent
- D7.6 per cent
Show the answer and explanation
Correct answer: B
Explanation
Growth for 2026-27 was projected at 6.9 per cent.
7.6 per cent is the new-series estimate for 2025-26, the year just ended.
- Concept
- RBI growth projection for 2026-27
- Typical time
- 50 seconds
- Written from
- rbi.org.in
Question 3
Which meeting of the Monetary Policy Committee, held in April 2026, opened 2026-27?
- AThe 57th
- BThe 59th
- CThe first of a newly formed committee
- DThe 60th
Show the answer and explanation
Correct answer: D
Explanation
The April 2026 meeting was the MPC's 60th; it kept the repo rate at 5.25 per cent.
The 59th was in February 2026 and the 57th in October 2025.
- Concept
- MPC meetings in 2026
- Typical time
- 40 seconds
- Written from
- rbi.org.in
Question 4
Which risks did the Reserve Bank name in April 2026 as pushing inflation up in 2026-27?
- AEnergy prices from the West Asia conflict, and possible El Niño
- BA fall in the rupee after the India–EU FTA
- CA record rabi harvest
- DHigher GST rates
Show the answer and explanation
Correct answer: A
Explanation
The RBI cited persistently high energy prices due to the West Asia conflict and possible El Niño conditions as upside risks.
A strong rabi crop was named as a comfort, not a risk.
- Concept
- Inflation risks, 2026-27
- Typical time
- 65 seconds
- Written from
- rbi.org.in