MUMBAI, Feb 6: The Reserve Bank of India’s Monetary Policy Committee (MPC) has unanimously decided to retain the repo rate at 5.25%, Governor Sanjay Malhotra announced on Friday, reaffirming the central bank’s neutral policy stance.
The Governor said the decision followed a comprehensive review of macroeconomic indicators and future prospects. He noted that external pressures have strengthened since the previous policy meeting, but recent trade agreements are expected to support economic momentum. Domestic inflation and growth conditions, he added, remain encouraging in the near term.
With the benchmark rate unchanged, the Standing Deposit Facility (SDF) remains at 5%, while both the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5%.
The MPC’s approach underscores a calibrated effort to balance favourable domestic trends with uncertainties in the global environment. While India’s economic fundamentals appear resilient, policymakers are staying alert to shifting monetary signals from major economies.
Internationally, central banks have adopted mixed strategies in February 2026. The US Federal Reserve and the Bank of England kept rates steady after multiple cuts last year, whereas the Reserve Bank of Australia surprised markets by raising interest rates for the first time in two years.
Inflation data has offered additional comfort to the RBI. According to the Ministry of Statistics and Programme Implementation, provisional Consumer Price Index (CPI) inflation for December 2025 stood at 1.33% year-on-year, indicating subdued price pressures.
The central bank reiterated that upcoming policy moves will remain data-driven, prioritising price stability while continuing to support economic expansion.