RBI governor to deliver Monetary Policy Statement today:India’s central bank likely to keep repo rate unchanged at 5.25%, say experts

On Friday, February 6, 2026, the Reserve Bank of India (RBI), Governor, Sanjay Malhotra, will deliver the Monetary Policy Committee (MPC) statement regarding decisions taken in the three-day meeting. According to most of the analysts, the apex bank is likely to maintain status quo on 5.25% repo rate. What experts say on RBI’s repo rate cut chances? RBI’s repo rate trajectory: In the previous meeting held in December 2025, the key short term interst rate was reduced by 0.25% to make it 5.25%. The top bank had jumped upon the rate slashing trajectory in February 2025 after it had held up the rates steady at 6.50% in the preceding two years. Before February 2025, the rate setting committee had last revised benchmark policy rate in February 2023 when it had increased it from 6.25% to 6.50%. Repo rate reduced 4 times in 2025, cut by 1.25% What is the current stance of RBI? During the preceding MPC meet in December 2025, the RBI had also retained the neutral stance. The MPC’s accommodative stance means that the apex would look to either maintain status quo on the repo rate or slash it. While, neutral stance means that the central bank is open to either increase or decrease the benchmark policy rate depending on the situation on the ground. Why does Reserve Bank increase and decrease repo rate? Every central bank has a powerful tool in the form of policy rate to fight inflation. When inflation is very high, the central bank tries to reduce money flow in the economy by increasing the policy rate. When the policy rate is high, banks will get more expensive loans from the central bank. In turn, banks make loans more expensive for their customers. This reduces money flow in the economy. When money flow decreases, demand decreases and inflation comes down. Similarly, when the economy goes through a bad phase, there is a need to increase money flow for recovery. In such cases, the central bank reduces the policy rate. This makes loans from the central bank cheaper for banks and customers also get loans at lower rates. RBI meetings are held every two months The Monetary Policy Committee has 6 members. Of these, 3 are from RBI, while others are appointed by the Central Government. RBI meetings are held every two months. The Reserve Bank had released the schedule of Monetary Policy Committee meetings for the financial year 2025-26. There are to be 6 meetings in this financial year, this is the last meeting of this fiscal year. The first meeting of FY26 was held on April 7-9.