The Reserve Bank of India’s Monetary Policy Committee (MPC) left the policy repo rate unchanged at 5.25 % at its 6 February 2026 review, maintaining the standing deposit facility at 5.00 %, the marginal standing facility and Bank Rate at 5.50 %, and its neutral stance, judging the current setting appropriate amid a benign inflation backdrop and resilient domestic growth. After cuts totalling 125 bp between April and December 2025, the repo rate has been steady at 5.25 % since December. The unchanged corridor and liquidity adjustment facility remain the operating framework. Headline CPI inflation printed 0.7 % in November and 1.3 % in December; full-year 2025-26 inflation is projected at 2.1 % (Q4: 3.2 %), rising to 4.0-4.2 % in H1 2026-27, with risks seen evenly balanced. GDP growth is estimated at 7.4 % in 2025-26, underpinned by private consumption, investment momentum, robust credit expansion and high capacity utilisation; quarterly growth is now seen at 6.9 % in Q1 and 7.0 % in Q2 2026-27. Net external demand remains a drag as imports outpace exports, though forthcoming trade deals with the United States, the European Union, New Zealand and Oman are expected to bolster merchandise and services exports. Globally, 2025’s resilience is giving way to renewed volatility amid firmer US yields, lingering fiscal and geopolitical risks and uneven disinflation across advanced economies. The MPC reiterated that future actions will hinge on incoming data, including new GDP and CPI se
Reserve Bank of India 2026-02-06
RBI holds policy repo rate at 5.25%
India’s Monetary Policy Committee on 6 Feb 2026 kept the repo rate at 5.25%, left the standing deposit facility at 5.00% and the marginal standing facility/Bank Rate at 5.50%, and retained its neutral stance, citing subdued inflation (CPI 0.7 % Nov, 1.3 % Dec; FY25-26 forecast 2.1 %) and solid growth prospects (GDP 7.4 % in 2025-26) after 125 bp of cuts last year. The committee said future moves will be data-dependent amid heightened global volatility.