MUMBAI, Feb 6: The Reserve Bank of India on Friday kept the policy repo rate unchanged at 5.25 per cent and retained a neutral policy stance, citing stable domestic inflation and growth prospects amid intensifying global uncertainties.
Announcing the decision, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously opted to maintain status quo after a comprehensive assessment of evolving macroeconomic conditions and the overall economic outlook.
The Governor noted that external headwinds have strengthened since the previous policy review, even as the successful completion of recent trade deals has provided some support to the outlook. “Overall, the near-term domestic inflation and growth outlook remain positive,” he said.
With no change in the repo rate, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.
The MPC’s decision reflects a calibrated approach, balancing supportive domestic growth and inflation trends against heightened global risks and shifting monetary policy signals from major economies.
At the global level, monetary policy divergence became more pronounced in February 2026. While the U.S. Federal Reserve and the Bank of England maintained their policy rates following multiple cuts in 2025, the Reserve Bank of Australia surprised markets by announcing its first rate hike in two years.
On the inflation front, data from the Ministry of Statistics and Programme Implementation showed that year-on-year Consumer Price Index (CPI) inflation for December 2025 stood at a provisional 1.33 per cent, compared to December 2024.
The subdued inflation reading has offered comfort to policymakers, though the central bank remains alert to potential spillover risks from global developments.
The RBI reiterated that future policy actions will be guided by incoming data and the evolving macroeconomic environment, with continued emphasis on maintaining price stability while supporting economic growth. (Agencies)
