RBI MPC Update 2026: The Monetary Policy Committee of the Reserve Bank of India announced the results of its final bi-monthly review for the financial year 2025-26 today, February 6, 2026. In this crucial three-day meeting chaired by Governor Sanjay Malhotra, it was unanimously decided to keep policy rates unchanged.

Following this decision, the repo rate will remain stable at 5.25 percent, which means there will be no reduction in EMIs for home loans, car loans, or any other type of bank loan for the time being. In line with market expectations, the RBI prioritized stability and caution in its first policy announcement after the budget, aiming to maintain a balance between economic growth and inflation.

Current Rate Structure and Neutral Stance

The Monetary Policy Committee (MPC) has kept the repo rate unchanged, leaving the Standing Deposit Facility (SDF) rate at 5.00 percent, the Marginal Standing Facility (MSF) rate at 5.50 percent, and the Bank Rate at 5.50 percent. The Committee has maintained its policy stance as neutral, indicating that it remains open to further rate cuts based on economic conditions and global cues.

Governor Malhotra clarified that the impact of the total 125 basis point repo rate cut during calendar year 2025 is gradually being felt on the ground, and banks are passing on the benefits to their customers.

Post-Budget Strategy

This policy announcement comes immediately after the Union Budget 2026, in which the government placed special emphasis on growth and fiscal discipline. The RBI maintained its GDP growth forecast for the current fiscal year at 7.3 percent, reflecting the strength of the Indian economy.

In his address, the Governor stated that inflation is now stabilizing within the RBI’s target range, but given changes in the global supply chain and fluctuations in crude oil prices, it would be premature to further cut policy rates. Given the government’s borrowing plans and the flow of liquidity in the market, the RBI also assured adequate liquidity in the banking system.

Wait-and-See Policy

If we look at the past year’s data, the RBI began reducing interest rates as early as February 2025, reducing the repo rate from 6.50 percent to 5.25 percent. Following this aggressive cut, the central bank is now adopting a wait-and-see policy to assess the full impact of previous cuts. Stock market and financial experts believe that maintaining the status quo in this February review is a mature decision, as it will reduce uncertainty in the market and increase investor confidence.

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