RBI MPC Meet Highlights: Governor on repo rate, inflation, rupee and exports, key points explained

The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to stay cautious.

At its 59th meeting held from February 4 to 6, 2026, the central bank kept the repo rate unchanged at 5.25% and maintained a neutral stance, signalling stability over sudden moves amid global uncertainty.

Read More: RBI MPC at a Glance


Governor Sanjay Malhotra, who chaired the meeting, said the current policy rate remains appropriate as inflation is under control and India’s growth story continues to stay strong.

Read More: RBI MPC full statement

Here’s a simple breakdown of what the RBI announced and what it means for you.

Why did the RBI keep the repo rate unchanged?

The MPC unanimously voted to hold the repo rate steady at 5.25%.

The idea is simple: Inflation is easing, growth is resilient, and there’s no need to rush into a rate cut or hike.

With global headwinds still around, including geopolitical tensions, volatile markets and trade uncertainties, the RBI prefers to “wait and watch”.

Other key rates remain unchanged too:

• Standing Deposit Facility (SDF): 5.00%
• Marginal Standing Facility (MSF): 5.50%
• Bank Rate: 5.50%

What does the ‘neutral stance’ mean?

A neutral stance means the RBI is not committing to either rate cuts or hikes right now.

Future decisions will depend purely on incoming data, inflation, growth, global risks and liquidity conditions.

How strong is India’s growth outlook?

The RBI sounded confident about India’s economy.

Real GDP growth for FY26 is estimated at 7.4%, driven by:

• Strong private consumption
• Healthy investment activity
• Services sector momentum
• Manufacturing recovery
• Robust agriculture output

For FY27:

• Q1 growth revised up to 6.9%
• Q2 growth revised up to 7.0%

The central bank said risks are “evenly balanced”, meaning no major red flags for now.

What’s happening with inflation?

Inflation remains under control.


Recent data showed:

• CPI inflation: 0.7% in November
• CPI inflation: 1.3% in December

Food prices are soft, fuel inflation is moderate, and core inflation remains stable.

For the year:

• FY26 inflation projected at 2.1%
• Q4 expected at 3.2%
• FY27 Q1 and Q2 projected at 4% and 4.2%

The slight upward revision is mainly due to rising precious metal prices, not broad-based inflation.

Which sectors are supporting growth?

The RBI highlighted several bright spots:

• Services exports remain strong
• Construction activity firm
• Private consumption steady
• Investment backed by high capacity use
• Government capex boosting infrastructure
• Trade deals with the US, EU, New Zealand and Oman expected to help exports

India also continues to attract foreign direct investment, especially in greenfield projects.

What about banks and liquidity?

The RBI said it will stay proactive in managing liquidity.

Some key trends:

• Domestic fixed deposit rates declined by 95 basis points on average
• Money market rates tightened in January
• Credit growth remains strong, especially for large industries

The central bank will step in whenever needed to ensure stable financial conditions.

What did Governor Sanjay Malhotra say?

Malhotra stressed that:

• Economic activity remains resilient
• Inflation pressures are muted
• The current policy rate is appropriate
• Future policy moves will depend on evolving macroeconomic conditions

He also said new GDP and inflation series will be introduced soon, which will guide future decisions.

When is the next RBI MPC meeting?

Minutes of this meeting: February 20, 2026

Next policy meeting: April 6–8, 2026