RBI Repo Rate Remains Unchanged at 5.25%; GDP growth at 7.4%

The Reserve Bank of India (RBI) on Friday, 6 February, 2026, announced to keep the policy repo rate unchanged at 5.25%. The decision was taken at the 59th meeting of the Monetary Policy Committee (MPC), held from February 4 to 6, 2026, under the chairmanship of RBI Governor Sanjay Malhotra.

Consequently, the standing deposit facility (SDF) rate remains at 5.00%, and the marginal standing facility (MSF) rate and the bank rate remain at 5.50%.

The MPC also retained its “neutral” stance, signalling that future policy will be guided by evolving economic conditions, including inflation and growth dynamics. 

Growth Outlook

The MPC noted that the global economy showed resilience in 2025, supported by fiscal stimulus, accommodative monetary policy and easing inflationary pressures, though geopolitical tensions and financial market volatility persist.

On the domestic front, India’s real GDP growth for 2025-26 is estimated at 7.4%, according to the First Advance Estimates. 

The RBI revised real GDP growth projections for Q1 and Q2 of 2026-27 upwards to 6.9 per cent and 7.0 per cent, respectively, noting that risks to growth are evenly balanced.

Inflation Outlook

Headline CPI inflation remained subdued, recording 0.7% in November and 1.3% in December 2025. Food prices continued to remain in deflation, while core inflation stayed benign despite higher precious metal prices.

The RBI projected CPI inflation for 2025-26 at 2.1%, with inflation expected to rise to 3.2% in Q4 due to unfavourable base effects. For Q1 and Q2 of 2026-27, CPI inflation is projected at 4.0% and 4.2%, respectively.

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