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News India Live, Digital Desk: The Monetary Policy Committee (MPC) headed by the newly appointed Governor of 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 America in West Asia, RBI has decided to keep the repo rate unchanged at 5.25 percent. 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 big risk for the Indian economy. Shadow of ‘war’ on inflation and growth rate. Governor Sanjay Malhotra in his address said that due to supply chain disruption due to Iran-US war, crude oil prices had crossed $100 per barrel. Looking at its impact: GDP Growth: RBI has estimated the growth rate for the financial year 2026-27 at 6.9 percent. According to the Governor, this pace may slow down slightly due to the energy crisis caused by the war. Inflation: Retail inflation for the financial year 2027 has been estimated at 4.6 percent. The governor warned that if crude oil prices remain above $85/barrel, India’s import bill will increase, which could lead to inflation domestically. The Indian rupee had fallen to a record low since the war began. The Governor informed that RBI is actively intervening in the market to prevent rupee volatility. Foreign Exchange Reserves: India’s foreign exchange reserves as of April 3 were recorded at $697.1 billion. Although this is lower than February’s record high ($728.49 billion), the Governor assured that India has enough reserves to withstand any external shock. Temporary relief from ceasefire The Governor acknowledged that the news of the recent two-week ceasefire and the opening of the Strait of Hormuz has led to a 13-14% fall in global oil prices, which has helped the rupee to recover. However, he cautioned that this crisis has not been completely averted yet. If war flares up again or proposals like ‘toll tax’ on Hormuz are implemented, 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 the process of ‘due diligence’ will be simplified while onboarding MSMEs on the TReDS platform. 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.