
The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) is set to announce its policy stance tomorrow, concluding its three-day meeting that began on April 6. As India’s central bank evaluates the economic landscape, analysts widely expect the MPC to keep the key repo rate steady at 5.25%, maintaining the pause observed since the last rate cut in December 2025.
While the interest rate decision may not surprise markets, the main focus of this MPC session is likely to be the RBI’s commentary on global risks, particularly the ongoing US-Iran conflict. The war, which escalated in late February, has already disrupted global energy markets, keeping Brent crude above $100 per barrel.
The indefinite closure of the Strait of Hormuz has impacted India’s energy imports and contributed to a weakened rupee, which has fallen over 4% since the conflict began. FY26 is shaping up as the worst year for the rupee in over a decade.
RBI’s cautious stance comes amid a backdrop of tightening measures by other central banks. Recently, Australia and Japan raised interest rates to curb inflation, with Colombia and Brazil following the same. This global tightening trend contrasts with India’s approach, as the RBI has cut rates by a total of 125 basis points since February 2025.
The central bank has indicated that the current pause allows it to gauge the impact of previous rate cuts on economic growth and inflation.
Also Read: USD/INR: Rupee Stabilises After RBI Support, Opens Stronger
The market participants will be looking for the central bank’s decision on the repo rate. In addition, the RBI’s assessment of geopolitical risks and inflation pressures will be the key takeaway for investors and policymakers alike.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Apr 7, 2026, 12:28 PM IST

Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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