RBI Keeps Repo Rate Unchanged at 5.25%; Maintains ‘Neutral’ Stance

Feb 6, 2026 – The Reserve Bank of India (RBI) has kept the Repo Rate unchanged at 5.25% and maintains a Neutral policy stance on the economy. This was shared in an announcement made by RBI Governor Sanjay Malhotra on Friday (February 6) at the end of the three-day Monetary Policy Committee (MPC) meeting. Held from February 4 to 6, this is the panel’s sixth and the last bi-monthly policy meeting for FY26.

The RBI has raised FY26 GDP real GDP growth projection to 7.4% from 7.3% earlier. It raised Q1FY27 GDP growth forecast to 6.9% from 6.7%, and Q2FY27 GDO growth forecast to 7% from 6.8% earlier The Central Bank expects economic activity to hold up well in FY27. It revised upwards inflation projection for the current fiscal year to 2.1% from 2.0% earlier.

The inflation estimates for Q4FY26 was raised to 3.2% from 2.9%, Q1FY27 to 4.0% from 3.9%, and Q2FY27 to 4.2% from 4.0% earlier.

In this monetary policy easing cycle over the past financial year , the RBI has cut Repo Rate by cumulative 125 basis points since February 2025 making loan EMIs cheaper.

Key Highlights

• Policy Rates Maintained:
  • Repo Rate at 5.25%
  • Standing Deposit Facility (SDF) at 5.00%
  • Marginal Standing Facility (MSF) and Bank Rate at 5.50%
• Growth Outlook Strengthens:
  • FY26 GDP growth revised upward to 7.4% (earlier 7.3%)
  • Q1 FY27 growth projected at 6.9%, Q2 FY27 at 7.0%, with risks evenly balanced
• Inflation Outlook Comfortable:
  • CPI inflation remained below the tolerance band in Nov–Dec
  • FY27 inflation projected at 4.0% (Q1) and 4.2% (Q2), close to the RBI’s target
  • Minor upward pressure driven by higher precious metal prices
• Market & Liquidity Measures:
  • RBI to introduce a regulatory framework for corporate bond index derivatives and total return swaps
  • Rs 2.5 lakh crore cap removed under the Voluntary Retention Route (VRR)
• Support for Real Estate & Financial Sector:
  • Banks permitted to lend to REITs with safeguards
  • Proposal to ease NBFC branch expansion norms
• Banking Sector Initiative:
  • Launch of Mission SAKSHAM to strengthen Urban Cooperative Banks (UCBs)

With Media Inputs

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