Reserve Bank of India keeps policy rate unchanged at 5.25%
The Reserve Bank of India (RBI) on Friday kept its key policy rate unchanged at 5.25%, with the decision taken unanimously by the Monetary Policy Committee (MPC), Governor Sanjay Malhotra announced.
Speaking after the MPC meeting on February 6, 2026, Mr. Malhotra said the committee maintained a neutral policy stance following a detailed assessment of evolving macroeconomic conditions and the overall economic outlook, News.Az reports, citing Indian media.
The decision marks the first monetary policy review since Finance Minister Nirmala Sitharaman presented the Union Budget for the 2026–27 financial year.
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The RBI Governor noted that external headwinds have intensified since the previous policy meeting. However, he added that the successful conclusion of recent trade agreements has provided support to the medium-term economic outlook.
Mr. Malhotra said domestic inflation and growth prospects remain positive, stressing that the Indian economy continues to show resilience despite global uncertainties.
He also said that real GDP growth projections for the next two quarters have been revised upwards, reflecting improving momentum in economic activity.
He also added that CPI inflation for 2025-26 is projected at 2.1%
In its last meeting on December 5, 2025, the MPC had voted unanimously to reduce the policy repo rate by 25 basis points (bps) to 5.25%
Among the proposals put forth by the Governor in his announcement were the setting up a unified portal for better management of Lead Bank data, easing of branch opening norms for NBFCs.
The Governor said that the RBI will allow banks to lend to REITs with certain safeguards. The central bank will remain pro activity in liquidity management to meet productive requirements of economy, said Mr. Malhotra.
“System liquidity remained at ₹75,000 crore on daily average basis. The RBI took several steps to boost liquidity in December-January,” he said.
He added that forex reserves were very healthy at $723.8 billion by the end of January.
By Nijat Babayev
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