Mumbai, February 6
Reserve Bank of India Governor Sanjay Malhotra is set to announce the outcome of the three-day Monetary Policy Committee meeting today at 10 am, concluding deliberations that began on February 4 and continued through February 6.
The MPC meeting was scheduled over three days, during which members met to discuss policy outcomes and assess the course of economic growth, with a focus on deciding the policy repo rate.
The decision is expected to provide guidance on the central bank's stance at a time when inflation remains subdued, and growth prospects appear steady.
The latest policy announcement comes against the backdrop of significant monetary easing undertaken by the central bank over the past year.
Since last February, the Reserve Bank of India has reduced the key short-term lending rate, or the repo rate, by a cumulative 125 basis points. This easing reflects the RBI's approach of supporting economic growth while keeping inflation under control.
As per a report by Nuvama Research, the RBI is expected to keep the policy repo rate unchanged and maintain a neutral stance in this MPC meeting.
According to the report, the transmission of past rate cuts to bank lending rates is still underway, while bond yields have remained relatively sticky. In view of this, the report said that the central bank is likely to focus more on liquidity management rather than further rate action at this stage.
In the previous MPC meeting held in December, the RBI announced a 25-basis-point cut in the policy repo rate, bringing it down to 5.25 per cent.
The decision was announced by Governor Sanjay Malhotra on December 5, following the conclusion of the three-day MPC meeting conducted from December 3 to 5. Along with the rate cut, the central bank also revised its outlook on economic growth.
According to the RBI's assessment at the last meeting, the Indian economy is projected to grow at 7.3 per cent in the current fiscal year 2025-26.
This projection was around half a percentage point higher than the earlier estimate, reflecting improved confidence in domestic economic activity and overall growth momentum.
On the inflation front, the latest data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that year-on-year inflation based on the Consumer Price Index (CPI) for December 2025 stood at 1.33 per cent on a provisional basis, compared to December 2024.
The rise in inflation during the month was mainly attributed to higher prices in categories such as personal care and effects, vegetables, meat and fish, eggs, spices, pulses and related products.
The outcome of the ongoing MPC meeting will be closely watched by markets and observers, as it will signal the RBI's next steps amid easing inflation and stable growth prospects.
- ANI
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