The Reserve Bank of India (RBI) will present the last bi-monthly monetary policy for FY26 on February 6, 2026. Majority of consensus is that RBI could opt for pause on key policy reports. However, as per experts, this policy will be keenly watched as markets focus on the central bank's approach to managing liquidity and financial conditions amid elevated government borrowing and persistent foreign portfolio investor outflows.
In the previous policy, the six-members MPC voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25 per cent. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent.
The MPC also decided to continue with the neutral stance.
RBI's stance on inflation rate and GDP rate for FY27 will also be keenly watched.
In the Economic Survey 2026, the government said, the outlook for the global economy remains dim over the medium-term, with downside risks dominating. At the global level, growth is expected to remain modest, leading to broadly stable commodity price trends. Inflation across economies has trended downward, and monetary policies are therefore expected to become more accommodative and supportive of growth. However, certain key risks persist.
"With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even. Taking these considerations together, the Economic Survey projects real GDP growth in FY27 in the range of 6.8 to 7.2 per cent. The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism," said the survey.
Meanwhile, the current inflation rate is 1.33% in December 2025, which rose from previous month's 0.71% rate. CPI inflation has surged for the past two consecutive months. But despite this, inflation rate remained sharply below the RBI's upper and lower tolerance limit of 2%-6%.
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Feb 06, 2026, 3:43 pm IST
Rate Pause Offers Homebuyers Stability and Scope for Smarter Loan Planning
"A pause in interest rates should be viewed as an opportunity rather than a constraint. With EMIs likely to remain unchanged, homebuyers can take advantage of financial clarity to optimise loan tenures, reassess repayment strategies and make informed purchase decisions. Over the long term, disciplined financial planning combined with quality housing assets continues to deliver strong lifestyle and investment value," said Mr. Manish Agarwal, President- CREDAI Haryana & MD, Satya Group.
Feb 06, 2026, 3:08 pm IST
RBI MPC Live: RBI Repo Rate Will Help Borrowers To Focus On Loans And Provide An Opportunity To Invest In FD, Says Expert
"The Reserve Bank of India prioritizing stability with keeping the repo rate at 5.25%, a choice that will influence the financial planning of retail borrowers, particularly home loan customers," stated Siddharth Maurya, Founder and Managing Director of Vibhvangal Anukulakara Private Limited.
"It remphasizes a very necessary element of policy stability when the RBI has forecasted the inflation rate at 2.1 per cent for FY26 and thus, holding the repo rate at 5.25 per cent. Continued housing demand will mainly depend on the housing market in Tier, 2 cities where greater affordability has already started to result in the increased interest of buyers after the total rate cuts in the past year. Stable interest rates allow for better budgeting and planning in both luxury and mid, income housing sectors, at the same time, the availability of funds for developer increases as the liquidity in the market becomes more comfortable. The situation highly agrees with the government's initiative of urban infrastructure where the outcome will be a conducive environment for the real estate sectors steady and sustainable growth in the long term," noted Shashank Gupta, Director, RPS Group
Feb 06, 2026, 2:53 pm IST
RBI MPC Live: RBI Has Offered Much Needed Clarity At A Very Crucial Moment
"Keeping the repo rate steady at 5.25% and assuming a normal inflation trajectory for FY26, the RBI has offered much, needed clarity at a very crucial moment particularly for capital, intensive sectors such as the real estate industry. The combined effect of previous rate cuts is likely to keep enabling the demand from the end, users, especially those coming under schemes like PMAY 2.0 in Tier, 2 markets. Being in a better position to lend, banks will be able to finance more projects which, in turn, would lead to the creation of more jobs. The continuation of such a policy, along with the run of public capital expenditure, might set the stage for the stable cycles of investments that in turn would be the backbone of the broader economic growth most closely related to housing and infrastructure development," stated Vijay Raundal, Managing Director, Teerth Realties.
Feb 06, 2026, 2:33 pm IST
RBI’s Digital Fraud Protection Push Seen as Forward-Looking Step
“As digital payments become deeply embedded in everyday commerce, fraud patterns are also becoming more sophisticated. RBI’s proposed discussion paper to explore enhanced safety measures for digital fraud protection is a forward-looking move. It will encourage the industry to adopt smarter risk controls without compromising user experience. At Easebuzz, we continue to invest in technology-led risk management aligned with evolving regulatory expectations," said Parimal Kumar Shivendu, Executive Director, Easebuzz.
Feb 06, 2026, 2:10 pm IST
RBI’s New Guidelines Boost Customer Protection and Curb Mis-Selling
"The proactive action of RBI by way of fresh guidelines on customer service, mis -selling, protection in case of frauds and limited liability in electronic transactions augur well for the customer centric approach including for the senior citizens," said Jyoti Prakash Gadia, Managing Director, Resurgent India Limited.
Feb 06, 2026, 1:54 pm IST
RBI Maintains Neutral Stance While Balancing Growth Support and Global Risks
"By keeping rates unchanged and maintaining a neutral stance, the RBI has signalled continuity in policy while acknowledging easing inflation. The focus on liquidity management reflects a balanced approach, allowing room to support growth while remaining mindful of global uncertainties," said Kunal Varma, founder and CEO, Freo.
Feb 06, 2026, 1:27 pm IST
Higher Collateral-Free MSME Loan Limit to Boost Liquidity
“The RBI’s decision to keep the repo rate unchanged at 5.25 per cent, while continuing with a neutral stance, reflects a balanced approach. The proposal to increase collateral-free loan limits for MSMEs to ₹20 lakh is a positive step and will provide much-needed liquidity support to small businesses that often struggle to offer traditional collateral. This move also follows the Union Budget announcement of a ₹10,000-crore growth fund for the MSME sector, reinforcing the focus on improving access to credit. The continued emphasis on timely and mandatory payments to MSMEs through platforms like TReDS highlights the importance of transaction-based financing to improve cash flows and ensure faster and more efficient credit access for MSMEs,” Sundeep Mohindru, Founder & Promoter, M1xchange.
Feb 06, 2026, 1:16 pm IST
Bond Yields Edge Up as RBI Offers Limited Clarity on Liquidity Measures
"Markets had expected more clarity on liquidity measures or OMOs in the policy, and in the absence of that, bond yields moved up marginally by around 3-5 basis points. While changes in the CPI series could lift near-term inflation slightly, base effects should soften inflation over the next year," said Basant Bafna, Head – Fixed Income, Mirae Asset Investment Managers
Feb 06, 2026, 12:41 pm IST
Policy Stability Supports Homebuyer Sentiment, Strengthens India’s Real Estate Appeal
"For homebuyers, especially end-users, it reinforces confidence to move ahead with long-term decisions without worrying about sudden cost shifts. At the same time, globally, many major central banks have also adopted a cautious stance on interest rates amid moderating inflation," said Amit Goyal, MD, India Sotheby’s International Realty.
Feb 06, 2026, 12:18 pm IST
Repo Rate Held at Three-Year Low in 2026, RBI Signals Continued Policy Stability
"The year 2026 began with the repo rate being maintained at its three-year low. This is expected to enhance stability and provide an impetus to economic growth amid prevailing global uncertainties. Meanwhile, the RBI is also assessing market reactions following recent trade developments with the US and Europe. Taking cognizance of these factors, the repo rate is anticipated to remain stable in the coming months, supported by controlled headline inflation and robust economic growth," said Shrinivas Rao, FRICS, CEO, Vestian.
Feb 06, 2026, 12:10 pm IST
Unchanged Repo Rate Brings Policy Stability for Mortgage and Lending Sector
“From a mortgage and lending perspective, the RBI’s decision to keep the repo rate unchanged at 5.25 percent provides much needed policy stability for the home loan market. With the benefits of earlier rate cuts yet to be fully transmitted, efficient and timely pass through by lenders will be critical to sustain demand. Stable rates improve borrower confidence, encourage planned credit spending and support disciplined balance sheet decisions, especially for first time homebuyers and upgraders who remain sensitive to even marginal changes in borrowing costs,” said Amit Prakash Singh, Co-founder & CBO, Urban Money.
Feb 06, 2026, 11:56 am IST
RBI Has Done Heavylifting In Last Few Months, Says Expert
"The policy statement has been broadly along expected lines, with the Central Bank having done the heavy lifting over the last few months on both policy rates and liquidity infusion. At the same time, the RBI is expected to remain proactive on liquidity requirements, based on anticipated liquidity flows. While this would imply the prevalence of surplus liquidity for a while, it is expected that there will be a much closer alignment of overnight rate settings with the policy rate," stated Rajeev Radhakrishnan, CFA, CIO – Fixed Income, SBI Mutual Fund.
Feb 06, 2026, 11:16 am IST
RBI MPC Live: RBI's Repo Rate Stance Came On Expected Lines
"RBI’s monetary policy came exactly on expected lines with no change in rates, and stance kept unchanged at neutral. The Governor refrained from giving FY27 forecasts of GDP growth and CPI inflation since revision of the base rates in both are due shortly. The Governor sounded optimistic about the growth prospects in FY27 since “high frequency indicators suggest continuation of the growth momentum," stated Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Feb 06, 2026, 10:52 am IST
RBI MPC Live: RBI MPC Was Held From Feb 4 to Feb 6
The Monetary Policy Committee (MPC) held its 59th meeting from February 4 to 6, 2026, under the leadership of Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya
Feb 06, 2026, 10:46 am IST
RBI MPC Live: How RBI Repo Rate Has Changed in Past 3 Yrs
Effective Date
Repo Rate
% Change
8 February 2023
6.50%
+0.25%
8 June 2023
6.50%
0.00%
18 September 2024
6.50%
0.00%
6 December 2024
6.50%
0.00%
7 February 2025
6.25%
-0.25%
9 April 2025
6.00%
-0.25%
6 June 2025
5.50%
-0.50%
6 August 2025
5.50%
0.00%
5 December 2025
5.25%
+0.25%
RBI MPC Live: The RBI on Friday has announced to keep the repo rate unchanged to 5.25%. Here's how RBI repo rate has changed in last five years.
Feb 06, 2026, 10:44 am IST
RBI MPC Live: RBI's Decision To Keep Repo Rate Unchanged Is A Prudent Decision To Support Growth
"After the Reserve Bank of India’s cumulative 125 basis points of repo rate cuts over the past financial year, the Monetary Policy Committee has acted prudently to support growth while keeping overall inflation within the target band. With growth impulses supported by domestic policy measures and a generally stable macroeconomic backdrop, the decision to hold rates at this stage reflects a balanced, data-driven approach that prioritises macro-stability while allowing earlier monetary easing to fully transmit through the system. Experts widely anticipated this measured pause, recognising the value of assessing incoming inflation and growth data before further action," noted Sarbvir Singh, Joint Group CEO, PB Fintech
Feb 06, 2026, 10:39 am IST
RBI MPC Live: RBI Revises Outlook For Inflation For Q1, Q2 of FY27
Revised outlook for inflation at 4% and 4.2% for Q1 & Q2 FY27 respectively
Feb 06, 2026, 10:28 am IST
RBI MPC Live: FY26 Inflation Revised
The Reserve Bank of India Governor Sanjay Malhotra, on Friday, February 6, revised inflation forecast for the first quarter, and also raised GDP projection for the Q1FY27. The RBI MPC had kept the repo rate unchanged at 5.5%. The MPC revised FY26 Inflation Forecast To 2.1%.
Feb 06, 2026, 10:23 am IST
RBI MPC Live: RBI Revises FY 26 Inflation Forecast To 2.1%, GDP Projected To Grow At 6.9% in Q1FY27
RBI Revises FY 26 Inflation Forecast To 2.1%, GDP Projected To Grow At 6.9% in Q1FY27
RBI MPC Live: RBI Revises Inflation Forecast For FY26
RBI MPC Live: RBI Revises Inflation Forecast For FY26 to 2.1%
Feb 06, 2026, 10:08 am IST
RBI MPC Live: RBI Maintains Neutral Stance
RBI MPC Live: RBI Maintains Neutral Stance
Feb 06, 2026, 10:02 am IST
RBI MPC Meeting 2026 Live: Sanjay Malhotra Begins Speech, All Eyes On Repo Rate Decision
RBI MPC Meeting 2026 Live: Sanjay Malhotra Begins Speech, All Eyes On Repo Rate Decision
Feb 06, 2026, 9:41 am IST
Why RBI Should Cut Rates by 25 bps in February 2026
"RBI should cut interest rates by 0.25% in February 2026 because inflation has stayed around 2%, which is well below its 4% target since August 2025. This gives enough room to support growth, especially when the economy is expected to grow at a strong 7.2% in FY27. The Union Budget 2026 is unlikely to affect RBI’s decision, as the Monetary Policy Committee mainly looks at inflation and not government spending when inflation is low. Since inflation has been below 2.5% for a long time, RBI should also rethink its 4% target. A lower target range of 2% to 3% could help support steady growth without creating too much inflation," Prashant Mishra, Founder and CEO, Agnam Advisors.
Feb 06, 2026, 9:16 am IST
RBI Is Pumping Liquidity—So Why Are Lending Rates Still Stuck?
“Since the Dec-25 cut, money market and wholesale deposit rates have risen, despite durable liquidity infusion (partly to sterilize FX intervention). The spread between 3M CD rates and the repo rate is at the highest in over a decade. With CD ratio at highs of 81.7%, banks will find it increasingly difficult to cut lending rates, absent adequate liquidity. Notably, since Dec-24, durable liquidity injection measures have totaled Rs18trn. While the RBI’s balance sheet growth has picked pace in FY26, average system liquidity has still reduced in 2HFY26TD to ~Rs1trn vs the 1HFY26 average of ~Rs2.2trn, partly due to a persistently high government surplus (2H average: ~Rs2.2trn), currency-in-circulation leakage, and FX intervention drain. We expect these factors to normalize in the coming months, limiting the need for further RBI infusion and allowing system liquidity to improve to ~Rs2.4trn by end-FY26 (~0.9% of NDTL) from ~Rs200bn at end-Dec-25. We will also watch for potential regulatory easing at this MPC, to relax banks’ capital constraints and improve credit availability,” as per Emkay Global Financial Services.
“Even as global macro and market narratives continue to swing, the Feb-26 MPC faces a more supportive external backdrop, aided by the US–India trade resolution, which should help stabilize the current account, FPI flows, and the INR, in our view. That said, inflation is likely to edge higher as favorable base effects fade, while underlying growth drivers remain mixed despite a resilient headline GDP. The RBI could opt for a pause in the Feb-26 MPC. Monetary transmission, however, remains weak despite a fairly deep easing cycle and sustained liquidity infusion, and continues to be the key policy constraint. The bear-flattened sovereign curve, widening corporate bond spreads, and rising money-market and wholesale deposit rates underscore this friction. We expect system liquidity to ease to ~Rs2.4trn by end-Mar-26 from ~Rs200bn by end-Dec-25, limiting the need for more RBI infusion. However, we will watch for possible regulatory changes for banks in the Feb-26 MPC, to ease bank capital constraints and improve credit availability,” Emkay Global Financial Services said in a report.
Feb 06, 2026, 8:47 am IST
RBI MPC Verdict Awaited: MSMEs And NBFCs Bet On Stable Liquidity
“The upcoming RBI MPC meeting is expected to reinforce a status-quo approach on interest rates, allowing the central bank to assess the impact of recent fiscal measures. From an MSME and NBFC standpoint, the Union Budget has set the tone for growth, but its success will depend significantly on how monetary policy complements fiscal intent.
While higher government borrowing may exert pressure on bond yields, it also underscores the importance of active liquidity management by the RBI to prevent crowding out of private credit. NBFCs play a crucial role in last-mile credit delivery to MSMEs, and stable liquidity conditions are essential to keep lending costs in check.
We anticipate the RBI will maintain a balanced stance supporting growth while remaining vigilant on inflation so that MSMEs can continue to access credit with confidence and contribute meaningfully to economic expansion,” said Mr. Deepak Aggarwal, Co-founder, Co-CEO, and CFO of Moneyboxx Finance Limited.
Feb 06, 2026, 8:18 am IST
Rates on Pause, Liquidity in Play: What RBI May Signal This Time?
“The MPC is expected to remain on status quo in terms of policy rates. As reduction in policy rates have still not translated into market yields, focus is expected to remain on measures to ensure transmission of rate cuts aggregating 125 basis points over the past year. With growth-inflation dynamics remaining well supported, RBI has been infusing liquidity in the form of Variable Rate Repo (VRR) Operations as well as Open Market Operations (OMOs) over the past quarter. Expectations remain on RBI communication regarding continuity of the same in view of elevated Credit-Deposit (CD) Ratios for banks. Further, in view of the Gross Borrowing Calendar for FY 2026-27, markets are also looking forward to RBI’s communication on OMOs going forward to support the Government’s Borrowing Programme.” said Basant Bafna, Head- Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd.
Feb 06, 2026, 7:52 am IST
RBI MPC Meeting 2026 Live Updates: Why RBI's February Policy Is Key?
The latest monetary policy announcement comes after the much-awaited India-US trade deal. US President Donald Trump has reduced tariffs to 18% on Indian goods, and also revealed that India has agreed to stop buying Russian Oil. Russia and India have been decades long trade partners.
India's CPI inflation rose to 1.33% in December of 2025 from 0.71% in the earlier month, extending the normalization from the record low of 0.25% in October but below the market consensus of 1.5%. Despite the second consecutive increase, the inflation rate remained sharply below the Reserve Bank of India's tolerance limit of 2%-6%.
Feb 06, 2026, 7:48 am IST
RBI MPC Meet 2026 Live: What Is Market Expecting From RBI?
The upcoming RBI MPC meeting will be closely watched as markets focus on the central bank’s approach to managing liquidity and financial conditions amid elevated government borrowing and persistent foreign portfolio investor outflows. Continued USD purchases by FPIs are draining domestic liquidity, tightening financial conditions despite steady policy rates. Combined with heavy government bond supply, this is putting upward pressure on yields, constraining credit availability, and raising the cost of domestic fund-raising, as per Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers IFSC LLP. Also, markets will closely track the RBI’s assessment of these dynamics and its commentary on liquidity tools. Any guidance on proactive measures to maintain adequate system liquidity and ensure orderly bond market functioning will be critical for investor confidence and market stability. Overall, the MPC is expected to emphasise macroeconomic stability and transmission efficiency, signalling that policy effectiveness at this stage relies more on calibrated liquidity management and stable financial conditions rather than immediate adjustments to interest rates.
Feb 06, 2026, 7:47 am IST
RBI MPC Meet 2026 Live Updates: Latest Policy Interest Rates
In the previous policy, the six-members MPC voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25 per cent. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent.
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