RBI MPC 2026: Repo Rate Unchanged at 5.25%, Neutral Stance Maintained Amid Global Headwinds

• The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously decided to keep the repo rate at 5.25% and maintained a neutral stance on February 6, 2026.
• This decision comes despite intensified external headwinds since December 2025, balanced by benign inflation and successful trade deals, including one with the US.
• RBI Governor Sanjay Malhotra announced several measures, including removing the Rs 2.5 lakh crore limit on debt security investments under the VRR route and proposing a framework for compensating customers for fraudulent digital transactions.
• The central bank also doubled the limit for collateral-free loans to small enterprises from Rs 10 lakh to Rs 20 lakh and allowed banks to lend to REITs.
• Inflation is projected at 2.1% for the current fiscal year, with growth projections for Q1 and Q2 of FY27 revised upwards to 6.9% and 7% respectively.