This brought the cumulative reduction in policy rates in 2025 to 125 basis points, marking a period of sustained monetary easing. Why the RBI held rates steadyAnnouncing the policy, RBI Governor Sanjay Malhotra said several measures announced in the Budget are likely to boost growth. The MPC’s decision reflects a favourable inflation outlook, strong growth momentum, and lingering external risks. “The slight upward revision in the inflation outlook is primarily due to increase in prices of precious metals, which contribute about 60 to 70 basis points. Story continues below this adGrowth and inflation outlook raised marginallyThe central bank has marginally hiked its growth and inflation projections.

Source: Indian Express February 06, 2026 08:20 UTC