RBI keeps interest rates steady following trade breakthrough with United States

The Reserve Bank of India kept its repo rate at 5.25 percent today. Governor Sanjay Malhotra cited low inflation and a new U.S. trade deal for the decision.

The Reserve Bank of India ININ announced on Friday, February 6, 2026, that it has kept its key repo rate unchanged at 5.25 percent. The decision followed a unanimous vote by the six-member Reserve Bank of India ININ Monetary Policy Committee, which opted to retain a neutral monetary policy stance. This move is designed to preserve current monetary conditions as the nation experiences strong domestic growth and a shift in the international trade environment.
A significant factor in the current economic landscape is the recently announced U.S. USUS-India ININ trade deal. This agreement between the United States USUS government and the Government of India ININ has materially reduced tariffs on Indian ININ goods imported into the United States USUS. The Reserve Bank of India ININ noted that these reduced tariff pressures, alongside robust internal economic activity, supported the decision to maintain the status quo on interest rates.
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