Key Points: RBI keeps policy rate unchanged at 5.25% after 2025’s aggressive easing cycle. India’s central bank on Friday kept its benchmark policy rate unchanged at 5.25%, citing easing growth risks after trade deals with the United States and the European Union and a still-positive outlook for inflation and domestic demand. Central Bank Pauses After Aggressive Easing Cycle in 2025Reserve Bank of India Governor Sanjay Malhotra said the central bank is pausing its easing cycle as external risks have moderated and domestic conditions remain supportive. The Reserve Bank of India last cut interest rates by twenty-five basis points in December, lowering the benchmark rate to 5.25% in a unanimous decision after flagging weakness in some key economic indicators. “The central bank has created enough space through last year’s cuts,” Sengupta said.

Source: Mint February 07, 2026 00:30 UTC