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)
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