RBI Policy February 2026: Repo Rate Held at 5.25%
Why in the news
The RBI left borrowing costs untouched at its February policy, hinting at a pause.
Key facts
- Repo rate: 5.25%, unchanged.
- Stance: neutral; the MPC chose status quo as macro conditions were stable.
- Future moves hinge on the inflation path and growth outlook.
Repo versus reverse repo
| Point | Repo | Reverse repo |
|---|---|---|
| RBI is | Lender to banks against government securities | Borrower from banks |
| Aim | Inject liquidity | Absorb liquidity |
| Money supply | Rises | Falls |
Exam angle
- Repo 5.25%; stance neutral; decided by the MPC.
- Higher repo makes loans costlier; reverse repo is usually below repo.