New Delhi | 6 Feb 2026

The Reserve Bank of India has decided to keep its key lending rate unchanged, offering stability to markets as inflation stays within comfortable levels. The central bank maintained the repo rate at 5.25% during its latest monetary policy review, even as price pressures continue to remain mild.

The six-member Monetary Policy Committee (MPC), which met between 4 and 6 February, voted unanimously for a status quo. Announcing the decision, RBI Governor Sanjay Malhotra said the policy stance would continue to remain neutral. A majority of the 39 economists surveyed by Bloomberg had also expected the central bank to hold rates steady at this level.

The RBI’s decision comes at a time when India’s economic outlook remains strong. GDP growth is projected at 6.9% for the first quarter of FY27, slightly higher than the earlier estimate of 6.7%. Inflation is expected to ease further to 3.9% in Q1 FY27, compared to the previous projection of 4.0%. With inflation staying below the RBI’s tolerance band, the central bank appears comfortable maintaining its current policy approach.

Some economists believe the rate-cut cycle may have reached its end, especially with India expected to grow at over 7% for the second consecutive year in FY27. The rupee has also seen its biggest rally in seven years, adding to the case for policy stability. Meanwhile, new CPI and GDP data series for the Indian economy are scheduled to be released later this month, which could offer fresh insights into future policy direction.

RBI Holds Repo Rate at 5.25% as Inflation Remains Under Control

The Reserve Bank of India has decided to keep the repo rate unchanged at 5.25%, showing confidence in the current economic situation. The decision comes as inflation continues to stay within safe limits, giving relief to both borrowers and markets.

The six-member Monetary Policy Committee met from February 4 to 6 and unanimously agreed to maintain the rate. RBI Governor Sanjay Malhotra announced that the policy stance will remain neutral. Most economists had already expected this move, with a majority predicting no change in interest rates.

India’s growth outlook remains positive. The RBI has projected GDP growth at 6.9% for the first quarter of FY27, slightly higher than earlier estimates. Inflation is expected to ease further to 3.9%, indicating stable prices and controlled cost pressures.

With the economy growing steadily and the rupee seeing its strongest rally in seven years, experts believe the phase of rate cuts may be over for now. The RBI is also expected to release new CPI and GDP data series later this month, which may guide future policy decisions.