Why is it in the news?
RBI’s MPC kept repo rate unchanged at 5.25% in February 2026 meeting.
Decision follows 25 bps cut in December 2025.
Category: Economy
Important Points:
● Repo rate retained at 5.25%
● Monetary policy stance remains “neutral”
● GDP growth projection for FY26 raised to 7.4%
● Retail inflation projection for FY26 raised to 2.1%
● Headline inflation 1.33% in December 2025
● CPI target 4% within 2–6% band
● Robust consumption projected ~7% in FY26
● Global risks: geopolitical tensions and trade uncertainties
● New trade agreements with US, EU, Oman, New Zealand under assessment
● MPC formed under amended RBI Act, 1934