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RBI Policy February 2026: Repo Rate Held at 5.25%

7 February 20261 min read
BANKING & FINANCERBI PolicyFebruary 2026:Repo Rate Held at5.25%7 February 2026safalsetu.com

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

PointRepoReverse repo
RBI isLender to banks against government securitiesBorrower from banks
AimInject liquidityAbsorb liquidity
Money supplyRisesFalls

Exam angle

  • Repo 5.25%; stance neutral; decided by the MPC.
  • Higher repo makes loans costlier; reverse repo is usually below repo.

Test yourself

1. What repo rate did the RBI retain in its February 2026 monetary policy?

The notes say the repo rate was held at 5.25%.

2. In a neutral policy stance, the RBI is:

A neutral stance leaves the RBI free to move either way depending on inflation and growth.

3. The reverse repo rate is the rate at which the RBI does what?

Reverse repo is the rate at which RBI borrows from commercial banks to absorb liquidity.

This topic is part of Daily Current Affairs 7 February 2026 (19 topics).

All topics of the dayDay quizFebruary 2026

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