On 6 February 2026, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25%, while maintaining a neutral policy stance.
| Policy Instrument | Current Rate | Decision | Notes |
|---|---|---|---|
| Repo Rate | 5.25% | Unchanged | Reflects cautious stance amid global uncertainties. |
| Standing Deposit Facility (SDF) | 5.00% | Unchanged | Maintains liquidity balance. |
| Marginal Standing Facility (MSF) & Bank Rate | 5.50% | Unchanged | No change to borrowing costs for banks. |
| Monetary Policy Stance | Neutral | Continued | MPC remains flexible to respond to evolving conditions. |
📊 Economic Outlook
- Inflation: Currently low and under control, allowing RBI to avoid tightening.
- Growth Projection: FY26 GDP growth estimated at 7.4%, supported by strong domestic demand.
- Global Context: MPC highlighted uncertainties in global markets but noted India’s resilience.
- Past Actions: Since Feb 2025, RBI has already cut repo rate by 125 basis points, creating room for growth.
