Fri Feb 06 06:29:17 UTC 2026: ### RBI Holds Steady: Policy Rate Unchanged After Budget Announcement

The Story:
On February 6, 2026, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the central bank’s policy rate would remain unchanged at 5.25%. This decision, made unanimously by the Monetary Policy Committee (MPC), follows a detailed assessment of macroeconomic conditions and economic outlook, taking a neutral stance. This is the first monetary policy review following Finance Minister Nirmala Sitharaman’s Budget announcement for the financial year 2026-27.

The Governor acknowledged intensified external headwinds but highlighted the positive impact of recently completed trade deals. The RBI projects a positive outlook for domestic inflation and growth, with upward revisions to real GDP growth for the coming quarters and CPI inflation for 2025-26 projected at 2.1%.

Key Points:

  • The RBI policy rate remains unchanged at 5.25%.
  • The decision was made unanimously by the MPC on February 6, 2026.
  • The MPC maintains a neutral stance.
  • Real GDP growth forecasts for the next two quarters have been revised upwards.
  • CPI inflation for 2025-26 is projected at 2.1%.
  • Forex reserves are healthy at $723.8 billion by the end of January.
  • The RBI will allow banks to lend to REITs with certain safeguards.
  • A unified portal for Lead Bank data management will be set up.
  • Branch opening norms for NBFCs will be eased.

Key Takeaways:

  • The RBI is prioritizing stability amid global uncertainty, evidenced by maintaining the policy rate.
  • The positive outlook on domestic growth and inflation reflects confidence in the Indian economy’s resilience.
  • The easing of regulations for NBFCs and REITs suggests a focus on stimulating specific sectors of the economy.
  • Healthy forex reserves provide a buffer against external shocks.

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