RBI Expected to Hold Repo Rate at 5.25% on Feb 6

The Reserve Bank of India is set to announce its monetary policy decision on Friday, February 6, 2026, with economists widely anticipating the central bank to maintain the key repo rate at 5.25 percent amid steady economic growth and subdued inflation pressures. RBI Governor Sanjay Malhotra will reveal the outcome of the three-day Monetary Policy Committee meeting, which began on February 4, at 10:00 a.m. in Mumbai.

The decision comes after a period of aggressive easing, as the RBI has lowered the repo rate by a cumulative 125 basis points since February 2025 to support expansion while targeting inflation at 4 percent. The most recent adjustment occurred in December 2025, when the six-member MPC, chaired by Malhotra, cut the rate by 25 basis points following two consecutive holds. This brought the policy rate to its current level under a neutral stance, reflecting a balance between stimulating activity and monitoring price stability.

Current economic indicators support a pause in further cuts. Provisional data from the Ministry of Statistics and Programme Implementation showed consumer price index inflation at 1.33 percent year-on-year in December 2025, up 62 basis points from...