RBI Keeps Repo Rate at 5.25%, Maintains Neutral Stance — Cumulative 125 bps Cut Since Feb 2025

6 February 2026
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Source: RBI Monetary Policy Statement (59th MPC Meeting); IndiaBonds; BusinessToday; Groww

The MPC unanimously held the repo rate at 5.25%, maintaining a neutral stance. This follows 125 basis points of cumulative cuts since February 2025 (from 6.50% to 5.25%). CPI inflation remained low at 1.33% in December 2025. GDP growth for FY2025-26 revised upward to 7.4%. System liquidity in surplus averaging ₹70,000 crore per day. Weighted average lending rate for fresh loans declined by 105 bps. RBI conducted ₹3,50,000 crore in OMO purchases and $15.1 billion in long-term forex swap auctions. CPI inflation for FY2025-26 projected at 2.1%.

💰 Impact on your wallet: If you have a repo-linked home loan, your EMI should already be significantly lower than a year ago — roughly ₹6,000–7,000 less per month on a ₹50 lakh loan. The pause signals rates are unlikely to go lower immediately. For FD investors, current rates of 7–7.5% may be near their bottom — a reasonable time for a 2–3 year FD. For new home loan borrowers, rates around 8.25–8.75% are favourable compared to the 9.5%+ of early 2024.

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