RBI Keeps Repo Rate Unchanged at 5.25% Amid Steady Inflation and GDP Growth

The Reserve Bank of India (RBI) has decided to keep its benchmark repo rate unchanged at 5.25 per cent, maintaining a neutral monetary policy stance despite India’s inflation remaining below the tolerance band. The six-member Monetary Policy Committee (MPC) met from February 4 to 6 and voted unanimously for the status quo, RBI Governor Sanjay Malhotra announced during a televised address on Friday.

The RBI has cut rates by a cumulative 125 basis points since February 2025, marking its most aggressive easing cycle since 2019. At its previous meeting in December, the central bank had reduced the repo rate by 25 basis points. Analysts had largely anticipated the decision, with a Bloomberg survey showing most economists expected the rate to remain at 5.25 per cent.

GDP Projected To Grow

India’s GDP is projected to grow by nearly 7 per cent for the second consecutive year in FY27, while the rupee has posted its biggest rally in seven years, prompting some experts to suggest that the rate-cut cycle may be nearing an end. Inflation in the first quarter of FY27 is estimated at 3.9 per cent, slightly below the 4 per cent observed earlier, and GDP growth is forecast at 6.9 per cent versus 6.7 per cent previously.

The RBI also indicated that the revised CPI and GDP series for the Indian economy will be released later in February, providing updated benchmarks for policymakers and market participants. The central bank emphasised that maintaining the repo rate aligns with its objective to balance growth and inflation while sustaining macroeconomic stability.