Summary of this article
RBI to announce FY26 final MPC meeting decision today at 10 am
Repo rate at 5.25 per cent after cumulative 125 bps cuts
Inflation eases as markets await liquidity, stance cues
RBI MPC Meet 2026: The Reserve Bank of India (RBI) is going to take its monetary policy decision today, February 6, 2026. The outcome would be presented by RBI Governor Sanjay Malhotra at 10 AM after the end of the Monetary Policy Committee (MPC) meeting. The meeting, which took place from February 4 to February 6, is the sixth and final bi-monthly review of policies for FY26.
RBI MPC Meet 2026
The six-member MPC is responsible for the benchmark repo rate which is the important policy rate for the banking system. The February policy review comes at a time when inflation has eased and overall macroeconomic conditions have been stable.
Since February 2025, the repo rate has been cut by a cumulative 125 bps (basis points) by RBI. In the policy review in December, the central bank reduced the repo rate by 25 bps to 5.25 per cent from 5.50 per cent and maintained a "neutral stance" in the policy.
The present MPC meeting is shortly after the Union Budget 2026-27 and the announcement of India-US trade deal. These developments are part of the macro economic background against which RBI is reviews growth, fiscal situation and external sector trends.
RBI Repo Rate And Policy Stance
The repo rate currently stands at 5.25 per cent. In the previous policy statements, RBI has reiterated its focus on maintaining price stability and growth while ensuring effective transmission of the past rate actions.
In its December policy, the central bank said liquidity conditions would be managed in line with the prevailing policy stance.
Liquidity Management And RBI Operations
In the last quarter, RBI has injected liquidity in the banking system by conducting Variable Rate Repo (VRR) operations and Open Market Operations (OMO) to ensure sufficient liquidity in the system.
The policy statement and the Governor's address are expected to give an update on prevailing liquidity conditions and RBI's operational approach.
Government Borrowing Vs Market Focus
The February policy also comes just as the government is releasing the gross borrowing calendar for FY 2026-27. Market participants will monitor RBI's judgement on the borrowing conditions vis-a-vis the government's funding programme.
The policy announcement will include closing the monetary policy cycle for FY26 and setting up the context for the next financial year.
