RBI MPC Meet Today: All Eyes on Repo Rate Decision, Traders, Buckle Up- But Don’t Expect Fireworks
The traders entering today’s session are not pursuing a rate cut. The RBI Monetary Policy Committee will conclude its meeting today, on February 6, 2026. The Street shows a strong expectation that the repo rate will remain unchanged at 5.25%.
The RBI has reached this stance after cutting interest rates by 125 basis points over the past 12 months. Inflation remains stable, while GDP growth continues to exceed 7%. The Union Budget 2026–27 and the India–US trade agreement have already been priced in by the markets. For traders, this means staying focused on details rather than reacting to impulsive moves.
So what exactly are we listening for? The tone of Governor Sanjay Malhotra’s remarks. Any commentary on liquidity conditions, inflation risks, or future policy direction could move banking stocks, rate-sensitive sectors, and the broader indices. Interest rates may stay unchanged, but the messaging won’t. Trading decisions will be driven by analysis-not just the headline announcement.
Why Is The RBI Expected To Pause Rates At Today’s RBI MPC Meeting?
The traders are waiting for the RBI MPC meeting because they believe the central bank will reveal its plans for interest rate changes. The central bank has already accomplished its primary goal by reducing interest rates through three major rate cuts, totalling 125 basis points over the last year. The time has arrived to observe how things will unfold after this move. The implementation of monetary policy requires time because its effects need to flow through lending activity and spending behaviour, which drive economic growth.
Inflation has moderated, while GDP growth remains above 7 %, and the market has already absorbed major events, including the Union Budget and the India–US trade deal. The RBI is expected to maintain its current stance, as no new emergency situation demands an immediate response.
Market participants need to look beyond the repo rate announcement to understand what truly matters. Market movements could shift when the governor shares his views on liquidity, inflation, and future policy direction. Markets may pause on rates, but price action will continue.
Key Policy Rates To Watch Ahead Of The RBI MPC Decision
| Policy Instrument | Current Rate (Feb 6, 2026) |
|---|---|
| Repo Rate | 5.25% |
| Standing Deposit Facility (SDF) | 5.00% |
| Marginal Standing Facility (MSF) | 5.50% |
| Bank Rate | 5.50% |
| Cash Reserve Ratio (CRR) | 3.00% |
What’s Guiding And Shaping The RBI MPC Policy Call This Time?
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Aggressive Easing Already Done: The RBI has little room-or need-for haste after delivering four rate cuts since early 2025, totalling 125 basis points. The last move in December 2025 already pushed policy into a supportive zone.
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Focus on Transmission: With rates cut sharply, the MPC now wants to see how well those reductions are flowing through to bank lending, consumer spending, and private investment before acting again.
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Comfortable Macro Backdrop: Inflation remains well under control, projected at around 2% this fiscal, while GDP growth continues to hum along above the 7% mark-hardly a setup for emergency action.
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Global and Policy Tailwinds: The India–US trade deal and Union Budget 2026–27 have boosted growth visibility, easing pressure on the RBI to provide additional monetary stimulus right now.
(With Inputs From ANI, Reuters)
Also Read: RBI MPC 2026: Markets Watch Closely as Governor Sanjay Malhotra Set to….
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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