RBI MPC meet 2026 LIVE: Central bank keeps repo rate unchanged, signals 'neutral' stance

By Admin

06 Feb, 2026

The Reserve Bank of India’s Monetary Policy Committee concluded its February 2026 policy meeting by maintaining the status quo on interest rates, reflecting confidence in the country’s inflation outlook and growth momentum amid rising global uncertainties.

Repo Rate Held at 5.25 Percent

In its latest review, the Reserve Bank of India Monetary Policy Committee voted unanimously to keep the policy repo rate unchanged at 5.25 percent. The decision marks a continuation of the MPC’s neutral policy stance, balancing domestic economic stability with emerging external risks.

Benign Inflation Supports Policy Continuity

RBI Governor Sanjay Malhotra stated that inflation remains below the tolerance band and continues to stay benign. According to the central bank, domestic price pressures are well contained, providing room for policy stability.

The MPC projected Consumer Price Index inflation to remain steady in the first half of FY27, with estimates at 4 percent in Q1 and 4.2 percent in Q2, indicating a comfortable inflation trajectory.

Strong Growth Momentum Remains Intact

High-frequency economic indicators point towards a continuation of strong growth momentum in the near term. The Governor highlighted that India’s growth outlook remains resilient, supported by stable macroeconomic fundamentals and improving demand conditions.

He also noted that recent landmark trade agreements signed with the European Union and the United States are expected to support sustained economic growth over a longer period, strengthening India’s external trade prospects.

Global Risks and Market Caution Persist

Despite positive domestic indicators, the RBI acknowledged increasing global challenges. Governor Malhotra cautioned that rising geopolitical tensions are reshaping the global economic order and could pose risks to growth and financial stability.

On the domestic front, bond market sentiment remains cautious, reflecting concerns related to fiscal sustainability. The MPC noted that external headwinds have intensified since the last policy meeting in December, warranting continued vigilance.

Policy Outlook Going Forward

The MPC reaffirmed its commitment to closely monitor evolving domestic and global developments. While inflation and growth prospects within India remain favorable, the central bank emphasized the need for a calibrated approach amid uncertain global conditions.

By maintaining the repo rate at 5.25 percent and signaling a neutral stance, the RBI aims to support growth while ensuring price stability in an increasingly complex global environment.