Finance | RBI MPC Unanimously Holds Repo Rate at 6.50% Amidst Stable 2026 Outlook

RBI MPC Unanimously Holds Repo Rate Steady at 6.50%

The RBI MPC maintained the repo rate at 6.50% on 2026-02-09">February 9, 2026, in its bi-monthly review to balance inflation and growth objectives. The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), in its first bi-monthly review of 2026, voted unanimously to keep the benchmark repo rate (the rate at which commercial banks borrow money from the RBI) unchanged, according to the official press release from the RBI.

Confirmed Policy Details and Economic Outlook

• Confirmed Facts:
  • The MPC voted unanimously to keep the benchmark repo rate at 6.50%, as stated in the RBI's official press release on February 9, 2026.
  • RBI Governor Shaktikanta Das indicated the decision reflects a balanced approach, considering easing inflation pressures and sustained domestic growth momentum, as highlighted during his post-meeting address.
  • The RBI revised its Consumer Price Index (CPI) inflation projection for fiscal year 2026-27 (FY27) downwards to 4.8%, citing favorable supply-side conditions and an improved monsoon outlook, as detailed in its latest Monetary Policy Statement.
  • The central bank maintained its Gross Domestic Product (GDP) growth forecast for FY27 at 7.0%, reflecting strong domestic demand, as reported in the same Monetary Policy Statement.
• Undisclosed Elements:
  • The specific votes of individual MPC members beyond the unanimous consensus have not been disclosed by the RBI.
  • Detailed projections for future repo rate adjustments beyond the current review period remain undecided, as confirmed by RBI officials declining to provide forward guidance on specific rates.

RBI's Monetary Stance and Market Implications

Following the MPC's decision, RBI Governor Shaktikanta Das reaffirmed the central bank's commitment to maintaining its 'withdrawal of accommodation' monetary policy stance, as reported by financial news wires on February 9, 2026. Mr. Das emphasized the need for continued vigilance on inflation and stated that the RBI would remain agile in its policy actions based on evolving economic data. This stance, which aims to gradually reduce liquidity from the system without stifling growth, suggests the central bank prioritizes anchoring inflation expectations even as the repo rate remains stable. For investors and borrowers in India, the unchanged repo rate provides predictability in lending rates for retail and corporate loans, affecting interest rates on home loans, car loans, and business credit lines, according to an analysis from ICICI Securities.

Broader Economic Context and Analyst Views

This decision aligns with a broader global monetary policy trend of inflation control, while considering domestic economic stability, as outlined in reports from the International Monetary Fund (IMF) on global economic outlooks. The RBI's calibrated approach, coupled with a revised FY27 CPI inflation forecast of 4.8% and a stable FY27 GDP growth projection of 7.0%, positions India for continued economic expansion. According to Dr. Ritesh Singh, Chief Economist at HDFC Bank, “The unanimous decision to hold the repo rate signals the MPC's confidence in the current macroeconomic trajectory, where inflation is moderating towards the target range while growth remains robust. The 'withdrawal of accommodation' stance ensures proactive management of any potential upside risks to inflation.” This perspective suggests that the RBI is managing both price stability and economic expansion, an important aspect for India’s 2026 financial landscape.

Key Takeaways

• The RBI MPC unanimously maintained the repo rate at 6.50% on February 9, 2026.
• The 'withdrawal of accommodation' stance remains, prioritizing inflation vigilance.
• FY27 CPI inflation forecast revised down to 4.8%, while GDP growth forecast held at 7.0%.

What This Means

The RBI's decision indicates a period of monetary policy stability for the Indian economy, offering predictability for lending and borrowing rates. The focus on 'withdrawal of accommodation' implies that while rates are stable, the central bank remains prepared to act against inflationary pressures. This fosters a stable environment for businesses planning investments and for consumers managing their finances, aligning with the central bank's mandate for price stability and growth.

People Also Ask

• What is the current repo rate in India as of February 2026?

  As of February 9, 2026, the benchmark repo rate in India stands at 6.50%, as unanimously decided by the Reserve Bank of India's Monetary Policy Committee in its first bi-monthly review of the year, according to the RBI's official statement.

• Why did the RBI MPC keep the repo rate unchanged?

  The RBI MPC kept the repo rate unchanged due to a balanced assessment of easing inflation pressures and sustained domestic growth momentum, as highlighted by Governor Shaktikanta Das in the RBI's post-meeting address on February 9, 2026.

• What is the RBI's inflation forecast for FY27?

  The Reserve Bank of India has revised its Consumer Price Index (CPI) inflation projection for fiscal year 2026-27 (FY27) downwards to 4.8%, citing favorable supply-side conditions and an improved monsoon outlook, according to its latest Monetary Policy Statement.

• What is the 'withdrawal of accommodation' stance?

  The 'withdrawal of accommodation' stance, reaffirmed by RBI Governor Shaktikanta Das on February 9, 2026, is a monetary policy approach where the central bank aims to gradually reduce liquidity from the financial system, indicating a readiness to tighten policy if inflation risks emerge, without necessarily increasing the policy rate immediately.

Last updated: February 9, 2026 18:30 IST