The Reserve Bank of India has maintained a status quo on its benchmark repo rate even as India’s inflation rate continues to remain below its tolerance band.
The RBI’s six-member Monetary Policy Committee (MPC), which met over 4-6 February, voted unanimously to keep the repo rate at 5.25%, Governor Sanjay Malhotra said during his televised speech on Friday. The policy stance was retained at neutral.
A majority of the 39 economists surveyed by Bloomberg had expected the central bank to keep its benchmark repurchase rate unchanged at 5.25% on Friday. With India’s GDP growth rate seen at more than 7% for a second straight year in FY27 and the rupee posting its biggest rally in seven years, some economists expect the rate-cut cycle may even be over.
RBI MPC Decisions Today
Here’s a quick look at the key decisions taken by India’s Monetary Policy Committee over their 4-6 February meeting:
- RBI maintains benchmark repurchase rate at 5.25%.
- RBI maintains a neutral monetary policy stance going ahead.
- India’s GDP growth seen at 6.9% in Q1 FY27 versus 6.7% earlier.
- India’s inflation rate seen at 3.9% in Q1 FY27 versus 4.0% earlier.
- New CPI, GDP series for Indian economy are due later in February.
The RBI has now cut rates by a total of 125 basis points since February 2025, the most aggressive easing since 2019. It had cut rates by 25 basis points at its last meeting in December.
One basis point is one-hundredth of a percentage point.