New Delhi, Feb 2 || The Reserve Bank of India (RBI) is set to hold its monetary policy committee (MPC) meeting from February 4-6 and according to economists, the MPC is expected to vote for a pause on a policy rate cut, while the central bank undertakes direct measures to tackle liquidity, bond stability and currency-related risks.
The Central Bank has already lowered the repo rate by 125 basis points since February 2025 to 5.25 per cent.
“With the government remaining on course its fiscal consolidation path, we don’t expect any material impact on the direction of monetary policy,” said Radhika Rao, Executive Director and Senior Economist at DBS Bank.
The MPC lowered rates in December 2025 but is expected to refrain from cutting rates further in February.
“We expect bond purchases to continue this quarter and in April-June 2026. With the FY27 Budget outlining a record high of borrowings, the central bank might prefer to be agile and nimble its money market related operations and keep borrowing costs in check,” said Radhika Rao, Executive Director and Senior Economist at DBS Bank.