RBI Meeting: Middle Class Faces Another Shock After Budget Disappointment

• The RBI's Monetary Policy Committee (MPC) meeting, which began on February 4, concludes on February 6, with policy decisions expected.
• Economists predict that loan EMIs are unlikely to decrease immediately, adding to the middle class's financial burden after the Union Budget 2026.
• The MPC, comprising the RBI Governor and six members, decides on key interest rates to control inflation and support economic growth.
• Experts like Madan Sabnavis (Bank of Baroda) and Nuvama Research anticipate the RBI will maintain a neutral stance, keeping interest rates unchanged.
• The RBI had previously reduced the repo rate by 25 basis points in its December meeting, totaling 125 basis points reduction in 2025.