RBI pauses rate cuts, retains interest rate at 5.25 pc

NEW DELHI: (Feb 6) After a 25 basis point rate cut in December, the RBI on Friday decided to pause on the policy rate front amid geopolitical uncertainties.

This is the first monetary policy review after Finance Minister Nirmala Sitharaman announced the Budget for financial year 2026-27.

Announcing the sixth and final bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.

The rate cut pause comes on the back of the CPI-based headline retail inflation ruling below the 2 per cent lower band mandated by the government for the last four months.

The central bank has been tasked by the government to ensure that consumer price index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side. For full news visit  https://www.ptinews.com/stories-detail/business/rbi-pauses-rate-cuts-retains-interest-rate-at-5-25-pc/3349419/1