RBI Keeps Repo Rate Unchanged at 5.25% in February 2026 MPC

The Reserve Bank of India (RBI) has kept the policy repo rate unchanged at 5.25% in its February 2026 Monetary Policy Committee (MPC) meeting, choosing stability over further easing after a year of aggressive rate cuts. The MPC also retained its neutral stance with a unanimous vote, signalling that future moves will depend on incoming data on inflation, growth, and global conditions.

RBI Keeps Repo Rate Unchanged

Repo rate: 5.25% (unchanged).

Standing Deposit Facility (SDF): 5.00%.​

Marginal Standing Facility (MSF) / Bank Rate: 5.50%.​

Policy stance: Neutral, with MPC members voting unanimously to maintain the status quo.

This is the first policy of 2026 and follows a cumulative 125 basis points (bps) of repo rate cuts since early 2025, as RBI shifted from a tight to a growth-supportive stance.

Why Has RBI Kept the Repo Rate at 5.25%?

• Inflation: Headline inflation is within RBI’s target band and projected near the 4% medium-term target.
• Growth: Economic activity remains strong with GDP growth estimated at around 7–7.4%, supporting a pause.
• Transmission: RBI wants earlier cuts (125 bps) to fully transmit to lending and deposit rates before any fresh move.
• Global risks: Uncertain global rate cycles and financial conditions favour a stability-first approach.

What Does This Mean for Borrowers and Depositors?

Borrowers/EMIs

• Loan EMIs (home, personal, MSME) linked to repo are expected to remain broadly unchanged in the near term.
• Gradual benefit from past cuts may still flow as banks continue rate transmission.

Depositors/FDs

• Bank fixed deposit rates are likely to stay stable, as policy rates have paused and credit demand is healthy.

Key Policy Announcements Beyond Rates

• RBI flagged measures to boost customer protection in digital payments, including compensation norms for small-value digital frauds (up to a specified limit, subject to conditions).​
• It reiterated focus on responsible lending, AML/KYC compliance, and risk management across the banking system.