RBI MPC meet: What stayed the same, what changed in February policy review

The Monetary Policy Committee decided to keep the repo rate unchanged at 5.25 per cent in its February meeting

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday announced that the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25 per cent in its February meeting. In the December 2025 policy review, the MPC cut the rate by 25 basis points from 5.5 per cent.

 

Here is a look at the key policy rates and projections that remained unchanged and those that were revised in the February monetary policy decision.

February MPC meeting: What remains the same

Repo rate: The RBI decided to keep the repo rate unchanged at 5.25 per cent in February, citing strong economic growth and lower-than-expected inflation.

 

 

Standing Deposit Facility (SDF): The Standing Deposit Facility was also kept unchanged at 5.00 per cent. Under the SDF, banks can park surplus funds with the RBI without providing any collateral.

 

Marginal Standing Facility (MSF): The MSF rate remained unchanged at 5.5 per cent. The MSF allows banks to borrow overnight funds from the RBI.

 

Policy stance: The RBI also maintained its policy stance as “neutral” in the February meeting. The stance was last changed from “accommodative” to “neutral” in the June policy review.

February RBI MPC: What has changed

Growth: The MPC revised its growth outlook upward, supported by recent trade deals with the European Union and the United States. Malhotra said real gross domestic product (GDP) growth is expected to be 7.4 per cent in FY26. The quarterly growth projections are:

• Q1 FY27: 6.9 per cent
• Q2 FY27: 7.0 per cent

Inflation: The MPC slightly raised its inflation projections, mainly due to higher prices of precious metals, the governor said. Inflation for FY26 was revised up to 2.1 per cent from 2.0 per cent earlier. The quarterly inflation projections are:

• Q4 FY26: 3.2 per cent
• Q1 FY27: 4.0 per cent
• Q2 FY27: 4.2 per cent

The MPC said growth and inflation projections for Q3, Q4 and the full year will be taken up in the April policy review, as the new GDP and inflation series are expected to be released later this month.

 

The next meeting of the Monetary Policy Committee is scheduled for April 6-8.