Mumbai, February 6, 2026 : The Reserve Bank of India (RBI) on Friday kept the policy repo rate unchanged at 5.25 per cent, with the Monetary Policy Committee (MPC) unanimously deciding to maintain a neutral stance, citing a careful assessment of domestic macroeconomic conditions amid growing global uncertainties.
Announcing the decision, RBI Governor Sanjay Malhotra said external headwinds have intensified since the last policy review, even as the successful completion of recent trade deals has improved the broader economic outlook. He noted that near-term domestic inflation and growth prospects remain positive, providing room for policy stability.
With no change in the repo rate, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.
The MPC’s decision reflects a balanced approach—supporting growth while remaining alert to global risks and shifting monetary signals from major economies. In February 2026, global monetary policy trends showed divergence: the US Federal Reserve and the Bank of England held rates steady after multiple cuts in 2025, while the Reserve Bank of Australia surprised markets with its first rate hike in two years.
On the inflation front, data from the Ministry of Statistics and Programme Implementation showed CPI inflation at 1.33 per cent (provisional) in December 2025, offering comfort to policymakers. However, the RBI emphasized continued vigilance against potential global spillovers.
Reiterating its data-dependent approach, the central bank said future policy actions will be guided by incoming data and the evolving macroeconomic outlook, with a sustained focus on price stability and economic growth.
