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RBI Holds Repo Rate at 5.25%, Eyes Growth Amid Risks

2/6/2026

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Summary

Story summary

On February 6, 2026, the Reserve Bank of India kept the repo rate at 5.25%, citing a positive outlook from U.S. and Europe trade deals.
Governor Sanjay Malhotra said inflation remains low, around 2%, and the RBI raised its current-year inflation forecast to 2.1%.
Growth is projected at 7.4% for the financial year, with 6.9% expected in the April–June 2026 quarter.
Risks include geopolitical uncertainty and energy-price volatility.

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Story summary

On February 6, 2026, the Reserve Bank of India kept the repo rate at 5.25%, citing a positive outlook from U.S. and Europe trade deals.
Governor Sanjay Malhotra said inflation remains low, around 2%, and the RBI raised its current-year inflation forecast to 2.1%.
Growth is projected at 7.4% for the financial year, with 6.9% expected in the April–June 2026 quarter.
Risks include geopolitical uncertainty and energy-price volatility.