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flag India's central bank held interest rates steady at 5.25% in Feb 2026 amid strong growth and stable inflation.

flag The Reserve Bank of India kept its key repo rate at 5.25% in February 2026, maintaining a neutral stance amid strong economic growth and stable inflation. flag The Monetary Policy Committee unanimously agreed to hold rates steady, citing robust domestic demand, improved trade prospects from new agreements with the U.S. and EU, and a benign inflation outlook. flag Inflation is projected at 2.1% for 2025-26, with a slight rise to 4-4.2% in early 2026-27, largely due to precious metal prices, while core inflation remains subdued. flag The central bank emphasized that policy remains appropriate given strong fundamentals, ongoing transmission from past rate cuts, and the need to await new GDP and inflation data before considering further adjustments.

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