The Reserve Bank of India (RBI) will announce its latest monetary policy decision today, February 6, 2026, with markets largely expecting the central bank to keep the repo rate unchanged. This announcement follows a series of rate cuts, with the last one made in December 2025, reducing the repo rate from 5.50% to 5.25%. Experts predict that the RBI will maintain a pause in rate cuts as it assesses the impacts of the previous changes on inflation and growth.
RBI Governor Sanjay Malhotra and the six-member Monetary Policy Committee (MPC) are expected to retain the neutral stance that was adopted in the previous meeting. This move would allow the RBI to monitor the effects of the earlier rate cuts before making any further adjustments. Given that inflation has largely stayed under control and economic growth has shown mixed signals, the MPC is seen as cautious about making immediate moves.
The outcome of the RBI’s decision is especially important for the real estate and housing sectors, which have benefited from earlier rate cuts, with improved affordability and increased demand from homebuyers. Experts such as Ashok Kapur from Krishna Group expect the RBI to continue with a balanced approach to support growth, particularly in infrastructure and real estate, which is vital to the broader economy. Ankur Jalan of Golden Growth Fund sees the previous rate cuts as having already set favorable conditions for real estate investors, and anticipates the MPC to maintain liquidity conditions that will further benefit the sector.
The RBI’s decision comes at a time of significant government borrowing and foreign portfolio investor outflows, which are putting pressure on liquidity. Sachin Sawrikar from Artha Bharat Investment Managers suggests that the focus will be on managing liquidity rather than further rate cuts. Given these dynamics, the market will closely track Governor Malhotra’s commentary for signals on how long the RBI intends to keep rates stable and what measures will be taken to ensure liquidity and financial stability. The MPC’s decision today is likely to focus on ensuring macroeconomic stability and smooth transmission of previous rate cuts while keeping financial conditions stable.
