RBI MPC Schedule: Interest Rate Decision to Come by February 6

The Reserve Bank of India (RBI) will hold its Monetary Policy Committee (MPC) meeting from February 4 to 6. Economists expect the MPC to pause any further cuts to the policy rate, focusing instead on managing liquidity, stabilizing bond markets, and mitigating currency-related risks.

Experts predict that the RBI will maintain a “neutral” stance while keeping its tone dovish, aimed at supporting spending, lending, and overall economic growth.

Repo Rate Reductions Since February 2025

Since February 2025, the RBI has cut the repo rate by a total of 125 basis points, bringing it down to 5.25%. The reductions were implemented as follows:

• February: 25 bps
• April: 25 bps
• June: 50 bps
• December: 25 bps

The MPC kept the repo rate unchanged in its August and October meetings, signaling a more cautious approach after successive cuts.

Union Budget 2026: Continuity and Stability

The Union Budget 2026 reinforces economic stability and a continuation of existing policies. Fiscal consolidation is on track, with the government’s debt-to-GDP ratio expected to decline by around 0.5 percentage points, and the fiscal deficit projected to narrow to 4.3% of GDP.

Also Read: RBI Imposes ₹2.70 Lakh Penalty on Northern Arc Capital for KYC Non‑Compliance

Liquidity Measures and Market Support

To ensure the smooth functioning of financial markets, the RBI has injected over ₹2 lakh crore into the banking system. Further measures include:

• Open market bond purchases
• Foreign exchange swaps
• Variable rate repo operations

These steps are designed to ease liquidity conditions in line with the current assessment of financial markets.

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