In Pictures: RBI maintains status quo, keeps repo rate at 5.25%

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday (February 6) decided to maintain the status quo on interest rates, keeping the repo rate — the central bank’s key policy rate — unchanged at 5.25 per cent

As a result, lending and deposit rates are expected to remain stable, with no change in equated monthly instalments (EMIs) on home and other personal loans of banks

The policy panel also revised the GDP growth rate higher at 7.4 per cent as against the earlier projection of 7.3 per cent and retail inflation at 2.1 per cent as against 2 per cent in FY 2026

Days after India announced trade agreements with the US and the European Union, the MPC also chose to retain its neutral policy stance, indicating that the RBI will keep its options open and will adjust policy depending on the prevailing factors

The decision to pause, taken after the presentation of the Union Budget, comes on the heels of a rate cut in December, when the six-member committee lowered the repo rate by 25 basis points to 5.25 per cent

This brought the cumulative reduction in policy rates in 2025 to 125 basis points, marking a period of sustained monetary easing

Announcing the policy, RBI Governor Sanjay Malhotra said several measures announced in the Budget are likely to boost growth

The MPC’s decision reflects a favourable inflation outlook, strong growth momentum, and lingering external risks. Domestic economic conditions remain broadly resilient