RBI Governor Keeps Repo Rate Steady at 5.25 Percent to Support Economic Growth

February 6, 2026, Mumbai : The Reserve Bank of India announced its decision to maintain the status quo on the benchmark interest rate today, keeping the repo rate unchanged at 5.25 percent. This marks a strategic pause in the central bank’s monetary policy cycle following a period of steady rate reductions over the past year. Governor Sanjay Malhotra, presiding over the Monetary Policy Committee meeting, stated that the committee voted unanimously to hold the rates steady while maintaining a neutral policy stance to balance inflation control with sustained economic momentum.

During the announcement, the Governor emphasized that the domestic economy remains in a resilient position despite a complex global landscape. The central bank has projected a real GDP growth of 7.4 percent for the current fiscal year, reflecting strong performance across the manufacturing and services sectors. The decision to hold rates is intended to allow the effects of previous monetary easing to fully integrate into the economy, providing a stable environment for both private consumption and corporate investment.

Inflation remains a key focus for the central bank, with the consumer price index forecast for the fiscal year set at 2.1 percent. While the current inflation levels are manageable, the Governor noted that the committee is keeping a close watch on potential risks, including volatility in the prices of precious metals and ongoing geopolitical uncertainties. The policy also saw the standing deposit facility rate remain at 5 percent, while the marginal standing facility and the bank rate were kept at 5.5 percent.

In addition to the rate decision, the Governor highlighted the positive impact of recently concluded international trade agreements, which are expected to bolster export figures in the coming months. The central bank’s neutral stance provides it with the flexibility to respond to emerging economic data, ensuring that the Indian financial system stays on a path of price stability and robust growth as it enters the new financial year.