RBI Monetary Policy Committee Convenes for Crucial Final Review of Financial Year 2026
The Reserve Bank of India (RBI) is poised to announce its pivotal monetary policy decision on Friday, February 6, marking the final policy review for the financial year 2026. The central bank's six-member Monetary Policy Committee (MPC), under the leadership of Governor Sanjay Malhotra, commenced its deliberations on Wednesday, February 4. This critical meeting follows closely on the heels of the Union Budget, which has outlined the government's comprehensive growth strategy and fiscal roadmap for the coming period.
Strategic Context and Historical Rate Actions
The RBI's forthcoming policy stance is now positioned as a key determinant in shaping how accommodative monetary policy will support consumption, investment, and credit expansion during the closing months of the fiscal year. In the previous policy meeting, the central bank implemented a 25 basis point rate cut, bringing the repo rate down to 5.25%. Concurrent adjustments included revising the Standing Deposit Facility (SDF) rate to 5.00%, while fixing the Marginal Standing Facility (MSF) rate and the Bank Rate at 5.50%. The MPC maintained a neutral stance, preserving flexibility for future policy measures as economic conditions evolve.
This recent reduction represented the fourth rate cut since February 2025. Throughout the calendar year 2025, the RBI executed a cumulative reduction of 125 basis points in the repo rate from its previous level of 6.50%. The central bank had maintained a steady rate position during the August and October policy reviews before resuming its monetary easing cycle later in the year.
Meeting Schedule and Public Access Details
The RBI's Monetary Policy Committee is conducting its review sessions from February 4 to February 6, 2025, to evaluate the current monetary policy stance. The official policy outcome will be unveiled by RBI Governor Sanjay Malhotra at 10 a.m. on February 6, followed by a comprehensive press conference scheduled for noon on the same day.
- Meeting Dates: February 4 to February 6, 2025
- Announcement Time: 10 a.m. on February 6
- Press Conference: 12 p.m. on February 6
Investors and stakeholders can access the live policy announcement through the RBI's official social media platforms. The subsequent press conference will be streamed live on the RBI's YouTube channel at noon on February 6, providing direct insights from the central bank leadership.
Market Expectations and Expert Analysis
According to prevailing market expectations and expert assessments, the central bank is unlikely to announce a rate cut in the upcoming policy announcement. Most analysts anticipate the RBI will maintain the repo rate unchanged at 5.25%.
Deepak Agrawal, Chief Investment Officer for Debt at Kotak Mahindra AMC, elaborated on this perspective: "The committee is expected to maintain the repo rate unchanged at 5.25%; however, forward guidance is likely to remain mildly dovish, underscoring a data‑dependent stance and preserving flexibility for recalibration should the growth–inflation trade‑off evolve." Agrawal further emphasized that the RBI's upcoming policy, arriving shortly after the Union Budget, is set against a supportive domestic macroeconomic backdrop. With inflation comfortably below the target, growth momentum remaining intact, surplus system liquidity, and fiscal consolidation reaffirmed, current conditions strongly favor policy stability.
Sujan Hajra, Chief Economist and Executive Director at Anand Rathi Group, provided additional context: "GDP growth is expected to moderate modestly, but with potential growth being supported by sustained public-sector capital expenditure and the boost from two major trade agreements, the monetary policy calculus remains finely balanced." Hajra highlighted that policy focus is expected to shift toward liquidity management and yield-curve stability, particularly in consideration of the Union government's substantial ₹17.2 trillion gross borrowing program. He noted that active management of system liquidity and bond-market spreads will be far more critical than adjustments to the policy rate at this juncture. Accordingly, no material change in the policy stance or the RBI's macroeconomic projections is anticipated from this meeting.
The February MPC meeting thus represents a crucial juncture where monetary policy coordination with recent fiscal measures will be carefully calibrated to sustain economic momentum while maintaining financial stability through the remainder of the fiscal year.
