What is the current stance on interest rates by the RBI MPC member?

An external member of the RBI's Monetary Policy Committee stated that the chances of a need to raise the repo rate are negligible in the near term.

What factors are contributing to inflationary pressures in India?

Inflationary pressures are influenced by weather risks, rising metals prices, and elevated crude oil amid geopolitical tensions, with base effects from falling inflation in FY26 expected to reverse.

How is credit growth performing in India?

Credit growth has improved significantly, with non-retail bank credit steadily increasing. Credit to large corporates rose to 7.5 percent YoY in December 2025, and credit to MSMEs saw a 29 percent YoY increase.

Home / Business and Economy / RBI MPC Member: Interest Rates Unlikely to Rise

RBI MPC Member: Interest Rates Unlikely to Rise

25 Feb

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Summary

Interest rate hikes are deemed negligible by an RBI MPC member.
Inflationary pressures from geopolitical events and commodity prices noted.
Credit growth to large corporates and MSMEs has shown significant improvement.

RBI MPC Member: Interest Rates Unlikely to Rise

Interest rates are unlikely to increase in the near future, according to Saugata Bhattacharya, an external member of the Reserve Bank of India's Monetary Policy Committee. He noted that despite building inflationary pressures from geopolitical tensions, weather risks, and rising commodity prices, the chances of a repo rate hike are negligible. Bhattacharya confirmed that the MPC unanimously voted to keep the repo rate unchanged at 5.25 percent during the recent policy meeting.