The Aryavarth Express
Mumbai (Maharashtra): Reserve Bank of India (RBI) Governor Sanjay Malhotra will announce the monetary policy decision of the Monetary Policy Committee (MPC) on Friday at 10 am, following the conclusion of its three-day meeting.
The MPC meeting began on February 4 and concluded on February 6, during which members reviewed macroeconomic conditions and deliberated on the future course of monetary policy, including the policy repo rate. The decision is expected to provide clarity on the RBI’s policy stance at a time when inflation remains low and economic growth appears stable.
The policy announcement comes amid significant monetary easing by the central bank over the past year. Since February last year, the RBI has reduced the repo rate by a cumulative 125 basis points, reflecting its strategy of supporting economic growth while keeping inflation under control.
According to a report by Nuvama Research, the RBI is likely to keep the policy repo rate unchanged in the current meeting and maintain a neutral stance. The report noted that the transmission of previous rate cuts to bank lending rates is still ongoing, while bond yields have remained relatively firm. As a result, the central bank may focus more on liquidity management rather than further rate action at this stage.
In the previous MPC meeting held in December, the RBI had announced a 25-basis-point cut in the policy repo rate, bringing it down to 5.25 per cent. The decision was announced on December 5 after the meeting, which was held from December 3 to 5. Along with the rate cut, the RBI had revised its economic growth outlook upward.
At the December meeting, the RBI projected India’s economic growth at 7.3 per cent for the current financial year 2025–26, around half a percentage point higher than its earlier estimate, citing improved domestic demand and growth momentum.
On the inflation front, data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that year-on-year Consumer Price Index (CPI) inflation for December 2025 stood at 1.33 per cent on a provisional basis. The increase in inflation was mainly driven by higher prices of personal care items, vegetables, meat and fish, eggs, spices, pulses and related products.
The outcome of the MPC meeting is being closely watched by markets and analysts, as it will offer key signals on the RBI’s policy direction amid easing inflation and steady growth prospects.
