RBI Likely to Hold Rates as Three-Day MPC Meeting Begins

New Delhi: After the Union Budget 2026 and the historic India-US trade deal, all eyes are now on the three-day Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting that begins from Wednesday, with the key repo rate decision on Friday. The three-day meeting of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) begins today, with the policy decision scheduled to be announced on Friday by RBI Governor Sanjay Malhotra.
The central bank has already cut the key policy repo rate by a cumulative 125 basis points since February last year, bringing it down to 5.25 per cent. However, analysts now expect the RBI to pause further easing as inflation shows signs of firming up.
“With the current repo rate at 5.25 per cent, and with inflation anticipated at around 4 per cent (will wait to see if the new series changes the inflation view), the current real rate of 125 bps seems reasonable,” Yes Bank said in a note.