RBI Monetary Policy Today: Rates Likely to Stay Unchanged in Final Review of FY26

The Reserve Bank of India is set to announce its bi-monthly monetary policy decision later today, following a two-day meeting of the six-member Monetary Policy Committee led by Governor Sanjay Malhotra. The meeting began on Wednesday, with members reviewing domestic growth trends, inflation dynamics, and global economic conditions.

This policy announcement will be the final review for the financial year 2025–26. Since February last year, the RBI has already reduced the repo rate by a cumulative 125 basis points, providing significant monetary support to the economy.

According to a research report by State Bank of India, the central bank is expected to keep interest rates unchanged in this policy. The report points out that one of the key developments since the previous MPC meeting in December has been progress on trade agreements between India and the European Union, as well as between India and the United States. These agreements have led to a reduction in tariffs on Indian goods to about 18 percent.

With this change, India now enjoys one of the lowest tariff rates among Asian economies, a factor that is likely to improve the country’s export competitiveness in the coming months.

Echoing a similar view, a note from Bank of America Global Research suggested that the RBI’s rate-cutting cycle appears to have paused, with policymakers expected to wait and assess the impact of earlier reductions before taking further action.