RBI Keeps Policy Rate Unchanged After MPC Review
The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25% , following the Monetary Policy Committee (MPC) meeting held on 6 February 2026 . The decision was unanimous , reflecting broad consensus among MPC members amid stable macroeconomic conditions.
Announcing the outcome, RBI Governor Sanjay Malhotra stated that the committee has retained a neutral policy stance , after a careful assessment of domestic and global economic trends.
Economic Outlook: Growth Resilient, Inflation Benign
Governor Malhotra noted that external headwinds have intensified since the previous policy review, but emphasised that recent trade agreements and improving global engagement provide support to India’s growth outlook.
He said that “domestic inflation and growth outlook remain positive” , adding that the Indian economy continues to show resilience . Reflecting this assessment, the RBI has revised real GDP growth projections upward for the next two quarters .
On the inflation front, the Governor projected Consumer Price Index (CPI) inflation at 2.1% for 2025–26 , indicating a comfortable alignment with the central bank’s inflation target band.
Context: First Policy Review After Union Budget 2026–27
This was the first monetary policy review after the Union Budget 2026–27 , presented by Finance Minister Nirmala Sitharaman . The policy outcome signals continuity and policy stability as the government pursues fiscal consolidation alongside growth-oriented spending.
In the previous MPC meeting held on 5 December 2025 , the committee had cut the repo rate by 25 basis points , bringing it down to the current level of 5.25%.
Liquidity Conditions and Banking Reforms
Governor Malhotra highlighted that system liquidity averaged around ₹75,000 crore on a daily basis , and that the RBI undertook several measures during December–January to ensure adequate liquidity for productive sectors of the economy.
Key announcements made alongside the policy decision include:
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Proposal to set up a unified portal for improved management of Lead Bank data
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Easing of branch-opening norms for Non-Banking Financial Companies (NBFCs)
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Permission for banks to lend to Real Estate Investment Trusts (REITs) , subject to safeguards
The RBI reiterated its commitment to pro-active liquidity management to support credit flow and economic activity.
Policy Signal Going Ahead
By holding rates steady while maintaining a neutral stance, the RBI has signalled a wait-and-watch approach , balancing growth support with macroeconomic stability. With inflation projected to remain low and growth momentum intact, future policy actions will depend on evolving global risks and domestic demand conditions.
Exam-Focused Key Points
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Repo rate retained at 5.25% in February 2026 MPC meeting
Month: Current Affairs - February 06, 2026
Category: Banking-Finance