RBI MPC Meeting Begins Today; Rate Pause Likely as Focus Shifts to Liquidity and Currency Risks

The Reserve Bank of India’s Monetary Policy Committee (MPC) begins its three-day meeting today, with deliberations set to continue until Friday. The outcome of the meeting, led by RBI Governor Sanjay Malhotra and the six-member MPC, will be announced on Friday.

Most economists expect the central bank to keep policy rates unchanged this time. Instead of further rate cuts, the MPC is likely to focus on managing liquidity conditions, ensuring stability in the bond market, and addressing potential risks to the currency.

The RBI has already cut the repo rate by a cumulative 125 basis points since February 2025, bringing it down to 5.25 percent. The last rate cut was announced in December 2025. Given the extent of easing already undertaken, analysts do not anticipate another reduction at the February meeting.