Mumbai: The Reserve Bank of India on Friday announced that the Monetary Policy Committee has unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, while continuing with a neutral policy stance, citing a careful assessment of domestic conditions and global developments.
Announcing the decision, RBI Governor Sanjay Malhotra said the committee reviewed evolving macroeconomic conditions and the overall economic outlook before arriving at the decision. He noted that external headwinds have intensified since the previous policy meeting, although recent trade deals have provided some support to the economic outlook.
Despite global challenges, the governor said the near-term outlook for domestic inflation and economic growth remains positive. With the repo rate unchanged, the Standing Deposit Facility rate continues at 5 per cent, while the Marginal Standing Facility rate and the Bank Rate remain at 5.5 per cent.
The MPC’s decision reflects a cautious approach, balancing stable domestic growth and inflation trends against heightened global uncertainties and shifting monetary signals from major economies.
At the global level, monetary policy paths have diverged in February 2026. The U.S. Federal Reserve and the Bank of England maintained their policy rates in recent meetings after undertaking multiple rate cuts during 2025. In contrast, the Reserve Bank of Australia surprised markets by announcing its first interest rate hike in two years, indicating a shift in its policy stance.
On the inflation front, data released by the Ministry of Statistics and Programme Implementation showed that consumer price inflation for December 2025 stood at 1.33 per cent on a year-on-year basis, according to provisional figures. The low inflation reading has provided comfort to policymakers, even as they remain alert to potential risks arising from global developments.
The RBI reiterated that future policy decisions will continue to be guided by incoming data and evolving macroeconomic conditions, with a continued focus on maintaining price stability while supporting economic growth.
