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RBI Holds Repo Rate at 5.25%, Projects FY27 GDP at 6.9% and Inflation at 4.6% Amid Global Risks

EconomyCORE
Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link
23 Apr 2026
~2 min
Source: Indian Express
Key Data:Repo rate 5.25%FY27 GDP growth 6.9%FY26 GDP growth 7.6%FY27 inflation 4.6%Forex reserves ~$700 billion8 FTAs covering 37 countries
Bodies:RBIMPC
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What This Article Covers

1.RBI Governor Sanjay Malhotra, in New York, highlighted India's strong macroeconomic fundamentals, robust policy frameworks, and forex reserves of around $700 billion.

2.The MPC kept the policy Repo Rate unchanged at 5.25% but revised GDP growth forecast down to 6.9% for FY27 and projected headline retail inflation to average 4.6%.

3.The Governor warned of upside risks to inflation from geopolitical conflicts, energy prices, and potential El Niño, terming it a supply shock that complicates central bank policy.

The Big Picture
Prelims · HighMains · Medium

RBI Governor projects resilient Indian economy with inflation and external debt under control despite global supply shocks, while highlighting risks from geopolitical conflicts and energy prices. Students must understand the MPC's rate decision, growth-inflation projections, and the interplay between global shocks and domestic monetary policy.

Exam Lens

Quick Exam Facts From News

Current Repo Rate5.25%
FY27 GDP Growth Projection6.9%
FY26 GDP Growth7.6%
FY27 Inflation Projection4.6%
Forex Reserves~$700 billion
FTAs Concluded8 agreements covering 37 countries

1-Minute Revision

  • ›Current Repo Rate: 5.25%
  • ›FY27 GDP Growth Projection: 6.9%
  • ›Target this Data: Repo Rate at 5.25%, FY27 GDP growth at 6.9%, FY27 inflation at 4.6%
  • ›Target this Nodal Body: Monetary Policy Committee (MPC) of RBI
  • ›Target this Data: Forex reserves at ~$700 billion

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageMedium

The Monetary Policy Committee (MPC), which decides the policy repo rate, is constituted under which Act?

Q2Statement-basedHard

Consider the following statements regarding the recent statements by the RBI Governor:

1. India's foreign exchange reserves are approximately US$ 700 billion.

2. The RBI has projected India's GDP growth for FY27 to be higher than that of FY26.

3. The Governor identified the current inflationary risks primarily as a demand shock.

Which of the statements given above is/are correct?

Q3Data-centricEasy

As per the recent MPC statement, what is the projected average headline retail inflation for the current fiscal year (FY27)?

Q4Application/ImpactMedium

According to the RBI Governor, what is the primary challenge for central banks if geopolitical conflicts remain unresolved for a long duration?

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