The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is widely expected to keep the repo rate – the key policy rate – unchanged in its upcoming policy meeting scheduled from February 4 to 6. In its December monetary policy, the six-member Monetary Policy Committee reduced the repo rate by 25 basis points (bps) to 5.25 per cent, bringing the cumulative cuts in 2025 to 125 basis points (bps). “The RBI cut the policy rate in December, when the MPC preferred to provide more weightage to inflation being below the lower bound of the Flexible Inflation Targeting (FIT) framework. If the RBI maintains status quo, interest rates on loans and deposits are likely to remain unchanged as of now. All external benchmark lending rates (EBLR) linked to the repo rate will not rise.

Source: Indian Express February 04, 2026 04:47 UTC