New Delhi, 6 February. The Reserve Bank of India has decided not to make any change in the repo rate after the monetary policy review. After the Monetary Policy Committee (MPC) meeting held in February 2026, RBI made it clear that the repo rate will remain at 5.25 percent. Earlier in the last one year, the central bank had reduced the rates by 125 basis points, but this time the rates have been kept stable.
At the end of the three-day policy review of the RBI, the MPC has also revised the inflation estimates for the first and second quarters of the financial year 2026-27. Now inflation for the first quarter has been estimated at 4 percent and for the second quarter at 4.2 percent, which is slightly higher than before. This indicates that the central bank is adopting a cautious stance regarding inflation.
RBI Governor Sanjay Malhotra said that due to various economic deals and activities taken in recent times, the outlook for the country’s economic growth remains positive. However, in view of the possible risks of inflation, it has been decided to avoid changes in interest rates for the time being.
What is the repo rate?
1- Repo rate is the rate at which RBI lends money to other banks. This is a major instrument of monetary policy.
2- When the repo rate is low, it becomes cheaper for customers and companies to take loans from banks.
3- If the MPC keeps rates steady, it means the Reserve is satisfied with the current inflation and growth situation and wants to see the impact of previous cuts before taking any further steps.
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