The Reserve Bank of India on Friday kept the repo rate unchanged at 5.25% after the conclusion of its three-day Monetary Policy Committee (MPC) meeting held from February 4 to 6. The committee, led by Governor Sanjay Malhotra, also decided to retain a neutral policy stance, signaling a cautious approach amid evolving economic conditions.
The decision comes at a time when growth expectations have strengthened following the Union Budget’s emphasis on higher government spending and renewed optimism around India–US trade ties after US President Donald Trump announced a trade deal with New Delhi. These developments have supported market sentiment and raised hopes of stronger economic momentum.
Over the past year, the RBI has lowered interest rates steadily, including a 25-basis-point cut in December 2025, to support growth. With fiscal support increasing and external trade prospects improving, the central bank appears to be adopting a wait-and-watch strategy as it balances growth support with inflation management.
