The Middle East conflict and elevated oil prices will likely lead to the Reserve Bank of India maintaining the policy repo rate unchanged at 5.25 per cent in its April 2026 MPC meeting, a report said on Thursday. 

The report from Bank of Baroda predicted that the economic landscape has reached the end of the rate cut cycle, and RBI will now remain on a prolonged pause. The central bank will likely maintain a neutral stance and remain vigilant about the evolving situation, it said, adding that targeted measures may be announced to support liquidity and the rupee.