RBI MPC Meeting: Will Repo Rate Be Cut or Paused? Decision Tomorrow Amid Easing Inflation

• The Reserve Bank of India's Monetary Policy Committee (MPC) will announce its decision on the repo rate on Friday, February 5, 2026.
• Most economists anticipate the central bank will keep the policy repo rate unchanged at 5.25% after aggressive easing over the past year.
• Since February last year, the RBI has cumulatively reduced the repo rate by 125 basis points, with the last cut in December.
• Experts suggest a pause is likely due to no pressing concerns on growth or inflation, and to assess the impact of previous rate cuts.
• The focus may shift to liquidity management tools like Open Market Operations (OMOs) and forex swaps, rather than further rate cuts.