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RBI MPC Decides: Key Rate Stays Put on Feb 6
5 Feb
Summary
- RBI's Monetary Policy Committee meeting concludes February 6, 2026.
- Repo rate anticipated to remain steady at 5.25% by analysts.
- Decision to be announced at 10:00 a.m. IST, followed by Governor's briefing.
The Reserve Bank of India's Monetary Policy Committee (MPC) is set to announce its interest rate decision on February 6, 2026. The influential six-member committee, chaired by Governor Sanjay Malhotra, began its review on February 4. Market participants are keenly awaiting the announcement, scheduled for 10:00 a.m. IST, with a press conference by the Governor to follow around noon.
Analysts widely anticipate that the MPC will maintain the current policy repo rate at 5.25%. This expectation stems from a period of rate cuts throughout 2025, totaling 125 basis points, and a desire for a 'watch-and-wait' strategy. Global economic uncertainties and currency market volatility are also contributing factors to the central bank's potential caution.
The MPC's decision occurs in the wake of the Union Budget 2026 and a significant India-US trade deal. These events may influence economic growth and inflation dynamics. Observers will be monitoring not only the repo rate but also the RBI's strategies for liquidity management and its approach to balancing inflation concerns with economic growth objectives.
The repo rate, a critical tool for monetary policy, determines the cost of borrowing for commercial banks. A steady repo rate suggests the RBI is content with the current economic trajectory and intends to assess the impact of prior monetary easing. This decision will influence borrowing costs, inflation expectations, and financial market sentiment.
