RBI Keeps Repo Rate Unchanged at 5.25%, Maintains Neutral

Mumbai (Maharashtra), February 6 :

The Reserve Bank of India (RBI) on Friday announced that the Monetary Policy Committee (MPC) has unanimously decided to keep the repo rate unchanged at 5.25%. The central bank also continued with a neutral policy stance, citing evolving macroeconomic conditions and global uncertainties.

RBI Governor Sanjay Malhotra said the MPC took the decision after a detailed assessment of the economic outlook.

Governor Highlights External Headwinds

While announcing the policy decision, the RBI Governor stated that external pressures have increased since the last meeting.

He said, “Since the last policy meeting, external headwinds have intensified. Though the successful completion of trade deals augurs well for the economic outlook. Overall, the near-term domestic inflation and growth outlook remain positive.”

SDF, MSF and Bank Rate Remain the Same

With no change in the repo rate:

Standing Deposit Facility (SDF) remains at 5%
Marginal Standing Facility (MSF) remains at 5.5%
Bank Rate also remains at 5.5%

RBI Balances Domestic Strength and Global Risks

The RBI’s decision reflects a balance between strong domestic growth and inflation trends, and global policy uncertainty. The central bank remains cautious due to shifting monetary signals from major economies.

Global Central Banks Show Policy Divergence

In February 2026, global monetary policy trends showed clear divergence.

The US Federal Reserve kept interest rates unchanged
The Bank of England also held rates steady
The Reserve Bank of Australia, however, surprised markets by raising rates for the first time in two years

Inflation Remains Low

On the inflation front, the latest data from the Ministry of Statistics and Programme Implementation showed that CPI inflation for December 2025 stood at 1.33% (provisional) compared to December 2024.

The low inflation reading offers comfort to policymakers, although the RBI remains alert to future risks due to global developments.

RBI: Future Policy Will Be Data-Driven

The RBI reiterated that future monetary policy actions will depend on incoming data and the evolving macroeconomic situation. The central bank will continue focusing on price stability while supporting economic growth.