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News India Live, Digital Desk: The Monetary Policy Committee (MPC) headed by the newly appointed Governor of the Reserve Bank of India (RBI) Sanjay Malhotra has announced the first bi-monthly policy for the financial year 2026-27 today, April 8, 2026. In view of global uncertainties, especially the ongoing military conflict between Iran and the US in West Asia, RBI Repo rate to 5.25 percent But it has been decided to keep it unchanged. Along with this, the bank has maintained its stance ‘neutral’. Governor Malhotra clarified that although the two-week ceasefire has brought some relief to the market, volatility in crude oil prices is still a major risk for the Indian economy.
Shadow of ‘war’ on inflation and growth rate
Governor Sanjay Malhotra said in his address that due to supply chain disruption due to the Iran-US war, crude oil prices had crossed $100 per barrel. Considering its impact:
GDP growth: RBI estimates growth rate for financial year 2026-27 6.9 percent have put. According to the Governor, this pace may slow down a bit due to the energy crisis caused by the war.
Inflation: Retail inflation forecast for fiscal year 2027 4.6 percent Is placed. The governor warned that if crude oil prices remain above $85/barrel, India’s import bill will rise, which could lead to higher inflation domestically.
Safety of Rupee and Foreign Exchange Reserves
The Indian rupee had reached a record low since the war began. The Governor said that RBI is actively intervening in the market to prevent rupee volatility.
Foreign exchange reserves: India’s foreign exchange reserves as of April 3 $697.1 billion Has been registered. Although this is lower than February’s record level ($728.49 billion), the Governor assured that India has enough reserves to absorb any external shock.
Temporary relief from ceasefire
The Governor acknowledged that the recent two-week ceasefire And news of opening of the Strait of Hormuz led to a 13-14% fall in global oil prices, which helped the rupee recover. However, he cautioned that this crisis has not been completely averted yet. If war flares up again or proposals like ‘toll tax’ are implemented on Hormuz, RBI may have to make drastic changes in its policy.
Big announcements for MSMEs
To promote Ease of Doing Business, the Governor announced that now TReDS Platform But the process of ‘due diligence’ will be simplified while involving MSMEs. Apart from this, new rules have also been proposed to increase the participation of non-bank institutions in the money market. Overall, this policy of RBI is a mixture of ‘vigilance and stability’, where the eyes are completely focused on the international border.