RBI has kept the policy repo rate unchanged at 5.25%

Current Context: The RBI’s MPC met from Feb 4–6, 2026 and announced its decisions on Feb 6, 2026, marking the first review of 2026 and the final bi‑monthly policy for FY 2025‑26.

• The repo rate was kept unchanged at 5.25%, with the SDF at 5.00% and MSF/Bank Rate at 5.50%.
• The policy stance remained Neutral, decided by a 5:1 majority, though one member favored an accommodative stance.
• This follows a 25 bps cut in Dec 2025, bringing the total easing cycle to 125 bps.
• GDP growth for FY 2025‑26 was revised upward to 7.4%, while inflation was projected at a benign 2.1%.
• For FY 2026‑27, growth is expected around 6.9–7% in early quarters, with inflation averaging ~4.1% in H1.
• The MPC described a “Goldilocks scenario” of strong growth and low inflation, while cautioning about risks from geopolitics, global volatility, and commodity prices.

Question:

Q.1 What was the policy repo rate decided by the Reserve Bank of India (RBI) in the February 2026 Monetary Policy Committee (MPC) meeting?
a) 5.00 percent
b) 5.25 percent
c) 5.50 percent
d) 5.75 percent

Answer: b) The repo rate was kept unchanged at 5.25 percent, indicating a pause in rate action after previous easing.