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Status quo on repo rate likely

Business Standard

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February 04, 2026

Expectations from monetary policy review meeting scheduled for February 4-6

- ANJALI KUMARI

The reporate and stance of the regulator are expected to stay unchanged in the review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on February 4-6, a majority of a Business Standard poll of 12 respondents said.

The poll was conducted before the announcement of US cutting tariffs imposed on India to 18 per cent.

Most of them said a further rate cut was seen only if there were significant downside risks to growth. The domestic rate-setting panel cut the policy repo rate by 25 basis points (bps) to 5.25 per cent in December 2025 after keeping it unchanged in the previous two meetings.

The policy repo rate has been cut 125 bps in the rate-cut cycle, which started in February last year.

Respondents said that growth was expected to hold up in 2026-27 (FY27) and the inflation rate was likely to move closer to 4 percent, and gradually.

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