RBI MPC Schedule for FY27 Released, Repo Rate Held at 5.25%

Introduction

The Reserve Bank of India (RBI) has announced the schedule for its Monetary Policy Committee (MPC) meetings for the financial year 2026-27. This announcement comes shortly after the committee concluded its February 2026 meeting, where it unanimously decided to keep the policy repo rate unchanged at 5.25%. The decision reflects a cautious approach, balancing strong domestic growth against persistent global uncertainties.

February 2026 MPC Decision: A Pause for Stability

In its first monetary policy review of the 2026 calendar year, the six-member MPC voted unanimously to maintain the repo rate at 5.25%. Consequently, the Standing Deposit Facility (SDF) rate remains at 5.00%, and the Marginal Standing Facility (MSF) rate, along with the Bank Rate, stays at 5.50%. The committee also retained its policy stance as “neutral,” signaling that future actions will be data-dependent and contingent on the evolving macroeconomic landscape. This pause follows a cumulative rate reduction of 125 basis points (1.25%) since February 2025, with the last cut of 25 basis points occurring in December 2025. The central bank's decision to hold rates steady aims to allow the effects of previous cuts to fully transmit through the economy while monitoring inflation and growth dynamics.

Economic Outlook: Strong Growth and Benign Inflation

The RBI presented a positive outlook for the Indian economy. The real GDP growth forecast for the financial year 2025-26 is projected at a robust 7.4%, positioning India as the world's fastest-growing major economy. The central bank also revised its growth estimates for the first half of the financial year 2026-27 upwards. GDP growth for Q1 FY27 is now projected at 6.9%, and for Q2 FY27 at 7.0%, each an increase of 20 basis points from previous estimates. This optimism is supported by resilient private consumption, sustained investment activity, and the potential benefits from recent trade agreements.

On the inflation front, the outlook remains comfortable. Consumer Price Index (CPI) inflation is projected at 2.1% for FY26. For the upcoming fiscal year, inflation is expected to be 4.0% in Q1 FY27 and 4.2% in Q2 FY27, remaining within the RBI's target tolerance band. This combination of strong growth and contained inflation creates what some analysts describe as a “goldilocks” scenario, providing the MPC with the flexibility to adopt a wait-and-watch approach.

Key Policy Rates (February 2026)

Market Impact and Liquidity Management

The decision to hold the repo rate provides stability to financial markets and offers visibility for borrowers and lenders. The focus now shifts from further rate cuts to ensuring the effective transmission of the 125 basis points of easing already implemented. While liquidity in the banking system remains in surplus, estimated at around ₹2 lakh crore, the RBI did not announce any new liquidity infusion measures. The central bank has, however, reiterated its commitment to ensuring sufficient liquidity to support economic activity and maintain overnight rates close to the policy repo rate.

RBI MPC Meeting Schedule for FY 2026-27

The RBI has laid out its meeting calendar for the next financial year, providing clarity to markets on the timeline for future policy reviews. The bi-monthly meetings are crucial events for tracking the central bank's assessment of the economy.

Conclusion and Forward Outlook

The RBI's recent policy decision and the release of the FY27 meeting schedule underscore a strategy of cautious optimism. By holding the repo rate at 5.25% and maintaining a neutral stance, the MPC is prioritizing stability while it assesses incoming data on growth and inflation. The upward revision in GDP forecasts highlights confidence in India's economic resilience. As the market looks ahead, the first MPC meeting for the new financial year in April 2026 will be the next key event, where the committee will evaluate fresh data and global developments to chart its future course.