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RBI Monetary Policy Review – February 2026: A Calibrated Pause in a Goldilocks Economy

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Outlook Summary:  Looking ahead, RBI may cut 50 bps further in 2026, in line with the US Fed; India’s core CPI may hover around the 3.00-3.50% range, below 4.00% RBI targets On February 6, 2026, the Reserve Bank of India (RBI), under Governor Sanjay Malhotra, concluded its last Monetary Policy Committee (MPC) meeting of the financial year (2025-26). As highly expected, the six-member panel (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25% and also hold all other key policy rates at Dec’26 levels. The RBI MPC continues its neutral monetary policy stance, but one MPC member, Prof. Ram Singh, voted for an accommodative stance. Looking ahead, the RBI MPC will be guided by the evolving macroeconomic conditions and the outlook based on data from the new series in charting the future course of monetary policy. On Friday, February 6, 2026, India’s Central Bank, RBI, holds all key policy rates as highly expected. ●        Repo rate at 5...