EconomicsSource: Indian Express
Reserve Bank of India Holds Repo Rate Steady in February 2026 Meeting
Saturday, 7 February 2026
Key Points
Reserve Bank of India (RBI) maintains a steady repo rate at 5.25% during its February 2026 meeting. The Monetary Policy Committee (MPC) retains a neutral stance, reflecting a careful approach to future rate changes based on economic data. The GDP growth forecast is raised to 7.4%, while retail inflation is adjusted to 2.1%. Positive domestic conditions and external risks are evaluated to justify this decision.
Detailed Coverage
- Monetary Policy Stance: RBI retains a neutral stance.
- GDP Growth Forecast: Increased to 7.4% for FY26.
- Retail Inflation: Adjusted to 2.1% for FY26.
- Strong Growth: Driven by robust consumption and budget stimuli.
- Controlled Inflation: Headline inflation at 1.33%, below target.
- Pro-Growth Stimuli: Union Budget's measures expected to boost consumption.
- Global Risks: Geopolitical tensions necessitate caution.
- New Trade Pacts: Medium-term growth cushion under assessment.
- Accommodative Stance: Focus on lowering rates to stimulate growth.
- Neutral Stance: Flexibility to adjust policy based on data.
- Calibrated Tightening: Gradual tightening to curb inflation.
- Hawkish Stance: Prioritizing inflation control.
- Dovish Stance: Promoting growth through lower rates.
- Primary Mandate: Maintain CPI inflation at 4% target.
- Difference in Stances: Neutral allows flexibility; accommodative signals bias towards lower rates.
- Key Domestic Factors: Strong growth, benign inflation, and fiscal measures support the decision.
Economics