RBI MPC Meet Live Updates: Sanjay Malhotra-Led MPC Holds Rates at 5.25%

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, on February 6, 2026, decided to keep the benchmark repo rate unchanged at 5.25%. The policy decision reflects RBI’s cautious approach toward managing inflation risks while supporting economic growth amid global uncertainty. The central bank reaffirmed its commitment to price stability, adequate liquidity, and financial market stability, while closely monitoring inflation trends and GDP growth momentum.

RBI MPC Decision: Repo Rate Maintained at 5.25%

The RBI MPC unanimously voted to hold the repo rate at 5.25%, keeping the policy stance steady for another review cycle. The committee highlighted that the current interest rate level is appropriate to balance inflation control and economic expansion.

Governor Sanjay Malhotra stated that the MPC aims to maintain a carefully calibrated policy framework that supports growth without compromising price stability. The decision comes amid easing domestic inflation but persistent risks from food prices, crude oil volatility, and global economic uncertainty.

Inflation Outlook Guides RBI’s Policy Strategy

RBI noted that consumer price inflation (CPI) has moderated gradually, supported by easing supply-side pressures. However, food inflation risks and international commodity price fluctuations remain key concerns.

The central bank reiterated its commitment to keeping inflation close to the 4% medium-term target, stressing that future rate actions will be data-dependent. Governor Malhotra emphasized that sustainable growth is only possible when inflation expectations remain anchored.

GDP Growth Outlook Remains Stable for FY26

RBI maintained a positive outlook on India’s economic growth, citing strong domestic demand, steady industrial output, and government-led infrastructure spending.

The central bank said that services sector expansion, manufacturing recovery, and resilient consumption demand are expected to sustain economic momentum. Rural demand has also shown early signs of improvement, while private investment activity is gradually picking up.

Liquidity Management and Financial Stability Focus

The MPC assured that system liquidity will remain adequate, ensuring smooth credit flow to productive sectors of the economy. RBI will continue using open market operations, variable rate repos, and other liquidity tools as required.

Governor Malhotra underlined that financial stability remains a top priority, especially amid volatile global capital flows and currency market movements.

Global Risks and External Sector Challenges

RBI flagged global growth slowdown risks, geopolitical tensions, and volatile financial markets as major external challenges. The central bank remains vigilant regarding capital flow volatility, global bond yield movements, and exchange rate pressures.

Given the fragile global environment, the MPC decided to retain a cautious and flexible policy approach.

Market Reaction to RBI Policy Decision

Indian equity markets showed muted positive movement following the RBI announcement, while bond yields remained largely stable. Banking and rate-sensitive stocks witnessed limited volatility, as the policy decision aligned with market expectations.

The Indian rupee also remained relatively stable, reflecting investor confidence in the RBI’s balanced policy stance.

Conclusion

The RBI MPC’s decision to hold the repo rate at 5.25% highlights a measured and pragmatic monetary policy approach under Governor Sanjay Malhotra. By prioritizing inflation control, financial stability, and sustainable growth, the central bank aims to navigate domestic economic challenges and global uncertainties effectively. Going forward, inflation trends, growth momentum, and external risks will remain the key drivers of future policy actions.

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