RBI MPC at a glance: Your one-stop guide for all key decisions

The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to stay cautious but steady. At its 59th meeting held from February 4 to 6, 2026, the panel chose to keep the policy repo rate unchanged at 5.25 per cent, signalling stability amid global uncertainty and steady domestic growth.

Read More: RBI MPC Meet Highlights

The meeting was chaired by RBI Governor Sanjay Malhotra and attended by members Nagesh Kumar, Saugata Bhattacharya, Ram Singh, Poonam Gupta and Indranil Bhattacharyya. After reviewing economic and financial trends, the committee voted unanimously to maintain rates and continue with a neutral stance.


Read More: RBI MPC Meet Full Statement

Repo rate, SDF and MSF remain unchanged

The MPC kept all key policy rates steady.
The repo rate under the Liquidity Adjustment Facility remains at 5.25 per cent.
The Standing Deposit Facility (SDF) stays at 5.00 per cent.
The Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.50 per cent.

By holding rates, the RBI aims to balance growth and inflation without rushing into rate cuts or hikes.

Global economy shows resilience despite risks

Globally, the economy has remained surprisingly strong in 2025. Trade activity, fiscal stimulus and supportive monetary policies helped many countries manage inflation pressures. However, uncertainties remain.

Rising US bond yields, geopolitical tensions, volatile commodity prices and diverging monetary policies continue to create risks for financial markets. These factors have influenced the RBI’s cautious approach.

India’s GDP growth stays robust

India’s domestic economy continues to perform well. As per the First Advance Estimates, real GDP is expected to grow at 7.4 per cent in 2025–26.

Private consumption and fixed investment were the key growth drivers. While imports rose faster than exports, the services sector, agriculture and a recovery in manufacturing supported overall output.

Healthy demand, strong corporate balance sheets and government capital spending are likely to keep investment momentum intact.

Trade deals expected to boost exports

The RBI expects external trade to improve in the coming months. Services exports remain strong, while merchandise exports could benefit from a possible trade deal with the United States.

The comprehensive trade pact with the European Union and agreements with New Zealand and Oman are also expected to diversify exports and strengthen India’s external sector.

However, global trade tensions and financial volatility still pose risks.

Inflation remains low and manageable

Inflation continues to stay well within control. Headline Consumer Price Index (CPI) inflation stood at 0.7 per cent in November and 1.3 per cent in December 2025.

Food prices remained in deflation, while fuel and core inflation stayed moderate. Excluding gold, core inflation was stable at 2.6 per cent.

Strong foodgrain production, adequate buffer stocks and favourable crop conditions are expected to keep food prices steady.

Inflation projections for coming quarters

The RBI now projects CPI inflation for 2025–26 at 2.1 per cent, with Q4 expected at 3.2 per cent.

For the next financial year, inflation is likely to rise slightly due to base effects:

• Q1 2026–27: 4.0 per cent
• Q2 2026–27: 4.2 per cent

Even then, inflation is expected to stay near the RBI’s target, with risks seen as evenly balanced.

Neutral stance continues with cautious outlook

The MPC said the current policy rate is appropriate given stable inflation and resilient growth. Therefore, it chose to retain the neutral stance.

This means the RBI is ready to act either way, depending on fresh data. Notably, member Ram Singh suggested shifting to an accommodative stance, but the majority preferred to stay neutral.