The Reserve Bank of India’s Monetary Policy Committee (MPC) announced to keep the repo rate unchanged at 5.25 per cent on Wednesday. This marked a second consecutive pause amid rising global tensions in West Asia. The decision taken by the RBI shows a cautious approach because inflation risks have increased amid the global uncertainties, and the apex bank has maintained that domestic growth momentum remains strong and resilient.&nbsp;In another key move, RBI Governor Sanjay Malhotra announced the suspension of due diligence requirements for MSMEs on select trade platforms, aiming to improve ease of doing business.&nbsp;Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.&nbsp;The Monetary Policy Committee, led by the RBI Governor, convenes every two months to assess key economic indicators and decide on policy direction. The central bank had earlier kept the rate unchanged in its August, October, and February 2026 reviews.<h3>Key highlights of RBI MPC Meeting:</h3><ul><li>Repo rate unchanged at 5.25%; policy stance remains neutral.</li><li>Second consecutive pause after February, following a 25 basis points cut in December 2025.</li><li>Inflation risks rising, with projections revised upward, particularly for FY26 and near-term quarters.</li><li>FY27 CPI inflation forecast at 4.6%, within RBI’s target band.</li><li>Inflation to peak mid-year, projected at 4 per cent in Q1 FY27, rising to 4.4 per cent in Q2, peaking at 5.2 per cent in Q3, and easing to 4.7 per cent in Q4.</li><li>GDP growth outlook improved, FY26 estimate raised to 7.6 per cent from 7.4 per cent earlier.</li><li>FY27 growth projected at 6.9%, with risks tilted downward due to high energy prices and global uncertainties.</li><li>Domestic demand remains strong, driven by services, manufacturing resilience, and healthy balance sheets.</li><li>Private consumption and urban demand are expected to sustain economic momentum.</li><li>Global risks persist, especially due to geopolitical tensions like the US-Iran conflict, affecting supply chains.</li><li>Supply disruptions may fuel inflationary pressures, impacting demand conditions.</li><li>Government support measures on exports and supply chains to cushion external shocks.</li><li>India’s macro fundamentals remain strong, with the RBI emphasising vigilance and a data-driven policy approach.</li></ul>Also read: <a href="https://www.wionews.com/photos/iran-s-10-point-plan-explained-compensation-sanctions-hormuz-and-more-here-s-what-tehran-wants-after-2-week-ceasefire-deal-1775620008012/1775620008013">Iran’s 10-point plan EXPLAINED: Compensation, sanctions, Hormuz and more, here's what Tehran wants after 2-week ceasefire deal</a>

Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.

The Reserve Bank of India’s Monetary Policy Committee (MPC) announced to keep the repo rate unchanged at 5.25 per cent on Wednesday. This marked a second consecutive pause amid rising global tensions in West Asia. The decision taken by the RBI shows a cautious approach because inflation risks have increased amid the global uncertainties, and the apex bank has maintained that domestic growth momentum remains strong and resilient. In another key move, RBI Governor Sanjay Malhotra announced the suspension of due diligence requirements for MSMEs on select trade platforms, aiming to improve ease of doing business. Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development. The Monetary Policy Committee, led by the RBI Governor, convenes every two months to assess key economic indicators and decide on policy direction. The central bank had earlier kept the rate unchanged in its August, October, and February 2026 reviews. Key highlights of RBI MPC Meeting: Repo rate unchanged at 5.25%; policy stance remains neutral. Second consecutive pause after February, following a 25 basis points cut in December 2025. Inflation risks rising, with projections revised upward, particularly for FY26 and near-term quarters. FY27 CPI inflation forecast at 4.6%, within RBI’s target band. Inflation to peak mid-year, projected at 4 per cent in Q1 FY27, rising to 4.4 per cent in Q2, peaking at 5.2 per cent in Q3, and easing to 4.7 per cent in Q4. GDP growth outlook improved, FY26 estimate raised to 7.6 per cent from 7.4 per cent earlier. FY27 growth projected at 6.9%, with risks tilted downward due to high energy prices and global uncertainties. Domestic demand remains strong, driven by services, manufacturing resilience, and healthy balance sheets. Private consumption and urban demand are expected to sustain economic momentum. Global risks persist, especially due to geopolitical tensions like the US-Iran conflict, affecting supply chains. Supply disruptions may fuel inflationary pressures, impacting demand conditions. Government support measures on exports and supply chains to cushion external shocks. India’s macro fundamentals remain strong, with the RBI emphasising vigilance and a data-driven policy approach. Also read: Iran’s 10-point plan EXPLAINED: Compensation, sanctions, Hormuz and more, here's what Tehran wants after 2-week ceasefire deal

Notably, the repo rate decision came just hours after US President Donald Trump announced a “bilateral ceasefire” with Iran, which sparked a rally in global markets. Indian benchmark indices also opened higher following the development.

RBI holds repo rate steady at 5.25%, sees GDP growth at 6.9%; warns of US-Iran war impact

RBI governor Sanjay Malhotra said on Friday (Feb 6, 2026) that the apex bank will keep a distance from routine movements in the foreign exchange market and step in only if volatility turns excessive. The RBI continued the benchmark repo rate unchanged at 5.25 per cent after it announced the monetary policy decision.&nbsp;The Monetary Policy Committee (MPC), which convened between February 4 and 6, unanimously decided to hold rates unchanged. Governor Malhotra reaffirmed that the Reserve Bank of India does not aim for any particular exchange rate level for the rupee. “Whether it is an up movement or down—depreciation or appreciation—we generally stay away,” he said, and added that RBI will only intervene in the event of abnormal volatility or a speculative build-up, according to Firstpost.&nbsp;The governor confirmed that there are currently no signs of speculative pressure, even though the rupee has strengthened in recent sessions. The RBI, he added, will continue to let market forces guide the movement of the currency. Following the policy announcement, the rupee traded in a narrow range. After opening near 90.23 against the US dollar, it was quoted at around 90.70 by 2 pm, compared with its previous close of 90.36.<h3>Rise of the rupee after the India-US trade agreement&nbsp;</h3>Earlier in the week, the rupee saw a sharp rise after news of a trade agreement between India and the US. However, ongoing demand for dollars from domestic importers limited the rally and kept the currency from crossing the Rs 90-per-dollar threshold.&nbsp;Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, stated that the policy marks a major shift in emphasis. “Taken together, the MPC announcements signal a clear pivot by the RBI from headline monetary easing to targeted regulatory and structural interventions. By holding rates steady while rolling out a wide set of non-rate measures, the RBI is reinforcing that credit transmission, consumer protection and market depth can be strengthened without immediately relying on rate cuts,” he said.&nbsp;Also read: <a href="https://www.wionews.com/india-news/rbi-holds-repo-rate-at-5-25-raises-fy26-growth-forecast-to-7-4-1770366406050">RBI holds repo rate at 5.25%, raises FY26 growth forecast to 7.4%</a>

The governor confirmed that there are currently no signs of speculative pressure, even though the rupee has strengthened in recent sessions. And added that the RBI will continue to let market forces guide the movement of the currency.

RBI governor Sanjay Malhotra said on Friday (Feb 6, 2026) that the apex bank will keep a distance from routine movements in the foreign exchange market and step in only if volatility turns excessive. The RBI continued the benchmark repo rate unchanged at 5.25 per cent after it announced the monetary policy decision. The Monetary Policy Committee (MPC), which convened between February 4 and 6, unanimously decided to hold rates unchanged. Governor Malhotra reaffirmed that the Reserve Bank of India does not aim for any particular exchange rate level for the rupee. “Whether it is an up movement or down—depreciation or appreciation—we generally stay away,” he said, and added that RBI will only intervene in the event of abnormal volatility or a speculative build-up, according to Firstpost. The governor confirmed that there are currently no signs of speculative pressure, even though the rupee has strengthened in recent sessions. The RBI, he added, will continue to let market forces guide the movement of the currency. Following the policy announcement, the rupee traded in a narrow range. After opening near 90.23 against the US dollar, it was quoted at around 90.70 by 2 pm, compared with its previous close of 90.36. Rise of the rupee after the India-US trade agreement Earlier in the week, the rupee saw a sharp rise after news of a trade agreement between India and the US. However, ongoing demand for dollars from domestic importers limited the rally and kept the currency from crossing the Rs 90-per-dollar threshold. Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, stated that the policy marks a major shift in emphasis. “Taken together, the MPC announcements signal a clear pivot by the RBI from headline monetary easing to targeted regulatory and structural interventions. By holding rates steady while rolling out a wide set of non-rate measures, the RBI is reinforcing that credit transmission, consumer protection and market depth can be strengthened without immediately relying on rate cuts,” he said. Also read: RBI holds repo rate at 5.25%, raises FY26 growth forecast to 7.4%

The governor confirmed that there are currently no signs of speculative pressure, even though the rupee has strengthened in recent sessions. And added that the RBI will continue to let market forces guide the movement of the currency.

RBI to stay out of rupee moves, step in only during excessive volatility: Governor Malhotra

The Reserve Bank of India is expected to keep key policy rates unchanged at its upcoming monetary policy review meeting, slated for February 4-6, 2026, according to Crisil. The monetary policy committee had reduced the repo rate by 25 basis points in its December meeting to 5.25 per cent. Their policy stance remained neutral, indicating a data-dependent approach going ahead.&nbsp;"We expect the RBI to stay put on policy rates given the creep up in inflation," Crisil said in a report. India's retail inflation rose from 0.71 per cent in November to 1.33 per cent in December, marking a moderate uptick. Though it remained below the RBI's target range of 2-4 per cent.&nbsp;RBI Governor Sanjay Malhotra in December characterised India's current macroeconomic moment as a "rare goldilocks period", which currently marks high economic growth and exceptionally low inflation. Given strong growth reported inthe July-September quarter, the RBI raised its GDP growth projection at 7.3 per cent for the full year, up by half a percentage point.&nbsp;Against this backdrop, Crisil expect India's GDP growth to moderate to 6.7 per cent next fiscal compared with the first advance estimate of 7.4 per cent this fiscal. "Challenging global trade environment, moderating domestic fiscal support and waning support from statistical factors, namely a low base and this fiscal's low deflator, are expected to drag growth next fiscal. However, nominal growth is expected to be higher due to rising inflation," Crisil said. The National Statistics Office's first advance estimates pegged real GDP growth at 7.4 per cent for this fiscal 2025-26, compared with 6.5 per cent last fiscal.&nbsp;Moving on to inflation, Crisil expects India's retail inflation to rise to 5.0 per cent next fiscal 2026-27 from an estimated 2.5 per cent in the current fiscal 2025-26. "Low food inflation of this fiscal should lend a statistical lift to inflation next year. However, softer commodity prices and continued impact of the Goods and Services Tax rationalisation should keep inflation within the RBI's target band," it said.&nbsp;Crisil also gave a view on crude oil prices. It expects crude oil prices to remain benign this fiscal, averaging USD 62-67 per barrel. In calendar 2026, it sees prices averaging USD 60-65 per barrel. Brent crude oil prices fell to USD 62.7 per barrel average in December, down 1.4 per cent month-on-month and 15.1 per cent year-on-year. At the time of filing this report, crude oil traded at USD 59 per barrel.&nbsp;Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for the WION audience.

RBI Governor Sanjay Malhotra in December characterised India's current macroeconomic moment as a "rare goldilocks period", which currently marks high economic growth and exceptionally low inflation.

The Reserve Bank of India is expected to keep key policy rates unchanged at its upcoming monetary policy review meeting, slated for February 4-6, 2026, according to Crisil. The monetary policy committee had reduced the repo rate by 25 basis points in its December meeting to 5.25 per cent. Their policy stance remained neutral, indicating a data-dependent approach going ahead. "We expect the RBI to stay put on policy rates given the creep up in inflation," Crisil said in a report. India's retail inflation rose from 0.71 per cent in November to 1.33 per cent in December, marking a moderate uptick. Though it remained below the RBI's target range of 2-4 per cent. RBI Governor Sanjay Malhotra in December characterised India's current macroeconomic moment as a "rare goldilocks period", which currently marks high economic growth and exceptionally low inflation. Given strong growth reported inthe July-September quarter, the RBI raised its GDP growth projection at 7.3 per cent for the full year, up by half a percentage point. Against this backdrop, Crisil expect India's GDP growth to moderate to 6.7 per cent next fiscal compared with the first advance estimate of 7.4 per cent this fiscal. "Challenging global trade environment, moderating domestic fiscal support and waning support from statistical factors, namely a low base and this fiscal's low deflator, are expected to drag growth next fiscal. However, nominal growth is expected to be higher due to rising inflation," Crisil said. The National Statistics Office's first advance estimates pegged real GDP growth at 7.4 per cent for this fiscal 2025-26, compared with 6.5 per cent last fiscal. Moving on to inflation, Crisil expects India's retail inflation to rise to 5.0 per cent next fiscal 2026-27 from an estimated 2.5 per cent in the current fiscal 2025-26. "Low food inflation of this fiscal should lend a statistical lift to inflation next year. However, softer commodity prices and continued impact of the Goods and Services Tax rationalisation should keep inflation within the RBI's target band," it said. Crisil also gave a view on crude oil prices. It expects crude oil prices to remain benign this fiscal, averaging USD 62-67 per barrel. In calendar 2026, it sees prices averaging USD 60-65 per barrel. Brent crude oil prices fell to USD 62.7 per barrel average in December, down 1.4 per cent month-on-month and 15.1 per cent year-on-year. At the time of filing this report, crude oil traded at USD 59 per barrel. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for the WION audience.

RBI Governor Sanjay Malhotra in December characterised India's current macroeconomic moment as a "rare goldilocks period", which currently marks high economic growth and exceptionally low inflation.

RBI likely to hold rates in February as inflation edges up; no rate cut expected: Crisil

Amid intensifying geopolitical risks and global trade uncertainty, the RBI on Tuesday announced that it will maintain the repo rate steady at 5.5% retaining its neutral monetary policy stance. These are the key highlights of the RBI’s August 2025 Monetary Policy meeting.

What changed and what didn't? Here are key highlights from RBI’s August 2025 Monetary Policy meet

In line with market expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the key repo rate by 0.25 per cent to 6.25 per cent. This is the first rate cut in nearly 5 years and signals a shift in the central bank's policy to aid economic growth. Before this move, the RBI had kept the repo rate steady at 6.5 per cent for 11 straight meetings. RBI also raised India's GDP growth projection to 6.7 per cent from the previous estimate of 6.6 per cent.
<h2>RBI maintains a neutral policy stance</h2>
RBI's newly elected governor, Sanjay Malhotra, expressed optimism in the country's growth outlook, citing moderating inflation as a key factor. RBI also revised its inflation forecast for the next fiscal year to 4.2 per cent. According to Malhotra, rural consumption continues to improve, but urban consumption remains subdued. He emphasised that government policy support remains crucial for sustaining economic momentum. He also hailed the recent tax cuts announced in the budget as a major boost to household consumption.
<h2>Markets react with caution</h2>
Indian markets saw a muted response despite the rate cut. Investors also reacted to the moderate growth outlook for the next fiscal year. Analysts cite concerns over global economic uncertainty and domestic consumption trends as major factors that continue to weigh on sentiment.&nbsp;
Adhil Shetty, CEO of Bankbazaar.com reacted to the rate cut and said, 'The repo rate cut after 2 years is hugely welcome, and we congratulate Governor Malhotra on beginning his term with a bang. With the tax rate cuts earlier this month, the salaried and the middle class have received a double boost to tackle inflation and boost household savings.&nbsp;
He further explained, 'If you have a 20-year home loan at a rate of 8.75 per cent and had paid 12 EMIs by March, with a rate cut of 25 bps kicking in from April, your interest savings will improve by ₹8417 per lakh. For example, on a loan of ₹50 lakh, you&rsquo;ll save ₹4.20 lakh at this rate, with 10 EMIs being shaved off the loan tenure, all other parameters remaining constant.'
BankBazaar recommends that, 'borrowers with good credit scores seek more aggressive payment options like refinancing to a rate lower by 50 bps or more. If they keep the EMI constant with a lower rate &mdash; let&rsquo;s say 8.25 per cent &mdash; they will secure per-lakh savings of ₹14,480 over the remaining tenor. These savings of nearly 15 per cent per lakh are substantial. Assuming the rate kicks in from April 1 after 12 EMIs of this loan have been paid, we get per-lakh interest savings of ₹3002 from the rest of the year. On a loan of ₹50 lakh, this implies savings of ₹1.50 lakh for the second year of the loan. Now, if we see these savings in the backdrop of additional savings from income tax slab hikes, a salaried individual can have substantial gains for FY25-25. For instance, A salaried person with a gross income of ₹25 lakh and a home loan of ₹50 lakh (20 years, 9%, 12 EMIs paid by March 2025) can hope to save a total of ₹1.37 lakh in FY2025-26 or ₹11,461 per month. This will be through a combination of interest savings on the home loan rate reduction of 25 BPS and the tax savings from higher tax slabs from April 1.'

Business & Economy, Before this move, the RBI had kept the repo rate steady at 6.5 per cent for 11 straight meetings. RBI also raised India's GDP growth projection.

In line with market expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the key repo rate by 0.25 per cent to 6.25 per cent. This is the first rate cut in nearly 5 years and signals a shift in the central bank's policy to aid economic growth. Before this move, the RBI had kept the repo rate steady at 6.5 per cent for 11 straight meetings. RBI also raised India's GDP growth projection to 6.7 per cent from the previous estimate of 6.6 per cent. RBI maintains a neutral policy stance RBI's newly elected governor, Sanjay Malhotra, expressed optimism in the country's growth outlook, citing moderating inflation as a key factor. RBI also revised its inflation forecast for the next fiscal year to 4.2 per cent. According to Malhotra, rural consumption continues to improve, but urban consumption remains subdued. He emphasised that government policy support remains crucial for sustaining economic momentum. He also hailed the recent tax cuts announced in the budget as a major boost to household consumption. Markets react with caution Indian markets saw a muted response despite the rate cut. Investors also reacted to the moderate growth outlook for the next fiscal year. Analysts cite concerns over global economic uncertainty and domestic consumption trends as major factors that continue to weigh on sentiment. Adhil Shetty, CEO of Bankbazaar.com reacted to the rate cut and said, 'The repo rate cut after 2 years is hugely welcome, and we congratulate Governor Malhotra on beginning his term with a bang. With the tax rate cuts earlier this month, the salaried and the middle class have received a double boost to tackle inflation and boost household savings. He further explained, 'If you have a 20-year home loan at a rate of 8.75 per cent and had paid 12 EMIs by March, with a rate cut of 25 bps kicking in from April, your interest savings will improve by ₹8417 per lakh. For example, on a loan of ₹50 lakh, you’ll save ₹4.20 lakh at this rate, with 10 EMIs being shaved off the loan tenure, all other parameters remaining constant.' BankBazaar recommends that, 'borrowers with good credit scores seek more aggressive payment options like refinancing to a rate lower by 50 bps or more. If they keep the EMI constant with a lower rate — let’s say 8.25 per cent — they will secure per-lakh savings of ₹14,480 over the remaining tenor. These savings of nearly 15 per cent per lakh are substantial. Assuming the rate kicks in from April 1 after 12 EMIs of this loan have been paid, we get per-lakh interest savings of ₹3002 from the rest of the year. On a loan of ₹50 lakh, this implies savings of ₹1.50 lakh for the second year of the loan. Now, if we see these savings in the backdrop of additional savings from income tax slab hikes, a salaried individual can have substantial gains for FY25-25. For instance, A salaried person with a gross income of ₹25 lakh and a home loan of ₹50 lakh (20 years, 9%, 12 EMIs paid by March 2025) can hope to save a total of ₹1.37 lakh in FY2025-26 or ₹11,461 per month. This will be through a combination of interest savings on the home loan rate reduction of 25 BPS and the tax savings from higher tax slabs from April 1.'

RBI cuts repo rate to 6.25%, first cut in 5 years

Revenue secretary Sanjay Malhotra steps in to replace Shaktikanta das as the new governor of the Reserve Bank of India. Malhotra is an IAS officer of the 1990 Rajasthan cadre with a career spanning over 33 years. His expertise includes finance and taxation. Watch in for more details!

Sanjay Malhotra Replaces Shaktikanta Das As New RBI Chief

India's Revenue Secretary Sanjay Malhotra will be the next governor of the Reserve Bank of India (RBI), the central government said in a notification on Monday (Dec.

India's Revenue Secretary Sanjay Malhotra will be the next governor of the Reserve Bank of India (RBI), the central government said in a notification on Monday (Dec. 9). The notification said that Malhotra will be the RBI governor for three years starting from Wednesday (December 11). He would be replacing Shaktikanta Das, whose tenure comes to an end on Tuesday. Malhotra will be the 26th governor of the RBI. Who is Sanjay Malhotra? Sanjay Malhotra is an officer of the Indian Administrative Services (IAS). He is a 1990 Batch Rajasthan Cadre IAS Officer. Malhotra did his undergraduate studies in computer science engineering at the prestigious Indian Institute of Technology (IIT), Kanpur. Appointments Committee of the Cabinet has appointed Revenue Secretary Sanjay Malhotra as the next Governor of the Reserve Bank of India for a three-year term from 11.12.2024 pic.twitter.com/4UfunEGEuH — ANI (@ANI) December 9, 2024 × Following this, he pursued a master's degree in public policy from Princeton University in the United States (US). Malhotra, a 1990 batch IAS officer from the Rajasthan cadre, has been serving as the revenue secretary since December 2022. A report by Business Today said that as revenue secretary, Malhotra played an important role in formulating tax policies for both direct and indirect taxes. He had also served as the ex-officio secretary of the GST (Goods and Services Tax) Council, the body responsible for managing the GST framework in the country. The outgoing RBI Governor, Shaktikanta Das, was appointed in 2018, succeeding Urjit Patel. (With inputs from agencies)

Revenue Secretary Sanjay Malhotra appointed governor of India's central bank RBI

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RBI holds repo rate steady at 5.25%, sees GDP growth at 6.9%; warns of US-Iran war impact

RBI to stay out of rupee, step in only during excessive volatility: Governor

RBI likely to hold rates in February as inflation edges up; no rate cut expected

What changed and what didn't? Key highlights from RBI’s August 2025 Policy meet

RBI cuts repo rate to 6.25%, first cut in 5 years

Sanjay Malhotra Replaces Shaktikanta Das As New RBI Chief

Revenue Secretary Sanjay Malhotra appointed governor of India's central bank RBI