Mumbai, Jan 6 (TNT): The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Friday concluded its first monetary policy review of the calendar year 2026, deciding to keep the key policy rate — the repo rate — unchanged at 5.25 per cent.
RBI Governor Sanjay Malhotra announced the decision, citing a comfortable inflation outlook and strong economic growth momentum.
The decision comes after a significant monetary easing cycle in which the central bank has cumulatively reduced the repo rate by 125 basis points (1.25 percentage points), providing relief to borrowers by lowering loan equated monthly instalments (EMIs).
Inflation trends remain benign, with Consumer Price Index (CPI) inflation touching its lowest level in the current data series in October 2025, offering policy space to the central bank.
At the same time, India’s growth story continues to outperform expectations.
Gross Domestic Product (GDP) growth has exceeded projections so far in the current fiscal year, with the economy poised to expand at over 7 per cent, retaining its position as the world’s fastest-growing major economy.
Market participants and analysts are closely tracking the RBI’s policy statement for updated inflation and GDP growth forecasts, which will provide guidance on the future course of monetary policy.
The RBI MPC’s stance reflects a balancing act between sustaining growth and ensuring price stability, as global uncertainties persist even while domestic macroeconomic fundamentals remain strong.
TNT KS
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