RBI MPC Retains Repo Rate at 5.25%
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Repo Rate: BEFORE the February 2026 MPC meeting, the benchmark repo rate was 5.25 percent, and NOW it remains unchanged at 5.25 percent to ensure macroeconomic stability.
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Monetary Policy Stance: BEFORE the meeting, the MPC had adopted a neutral stance, and NOW it continues to maintain this neutral stance to keep its policy options open.
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FY26 GDP Growth Forecast: BEFORE this announcement, the FY26 growth forecast was slightly lower, and NOW the central bank has marginally upgraded it to 7.4 percent.
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FY27 GDP Growth Projection: BEFORE this meeting, formal projections for the subsequent fiscal year were pending, and NOW the FY27 GDP growth is officially projected at 6.9 percent.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) framework in India? 1. The MPC operates under a flexible inflation targeting framework to maintain consumer price index (CPI) inflation at 4 percent with a tolerance band of plus or minus 2 percent. 2. Policy rates such as the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) are completely independent of the benchmark repo rate.