New Delhi: The Monetary Policy Committee (MPC) meeting of RBI is in its final stages today. On February 6, RBI will signify its new monetary policy for 2026. Last year the repo rate was cut several times, so there is only one question in everyone's mind – will there be relief this time too, or will the rates remain the same?
Is it expected that the repo rate will be cut this time?
There have been cuts in the last several rounds, now RBI seems to be in a slightly cautious mode. Experts are saying that there is not much telescopic for remoter cuts right now.
What does the upkeep have to do with this decision?
In the recently presented budget, the government has decided to increase the wanted expenditure (capex) by well-nigh 12% and has kept the fiscal deficit target at 4.3% for 2026-27. Meaning the government itself is supporting the economy by increasing expenditure. In such a situation, the pressure on RBI to cut rates reduces slightly.
Has the outside environment moreover improved?
A new trade deal has been signed between America and India, due to which the tariff has been reduced from 25% to 18%. Also, there is hope of FTA with European Union, which will increase trade and investment. This will make it easier for foreign wanted to come in, which will strengthen the economy.
What happened last time?
In the December meeting, the committee had reduced the repo rate by 0.25%. Since then, economists believe that the RBI will now prefer a 'wait and see' strategy – that is, it will wait and see the data.
When and where will the utterance be made today?
RBI Governor Sanjay Malhotra will signify the decisions in a printing priming at 10 am. Updates will be misogynist not only on repo rate, but moreover on inflation, GDP growth and future policy direction.
Where can viewers watch live?
There will be live stream on RBI's official website, YouTube waterworks and X (Twitter) handle. Real-time updates will moreover be misogynist on the websites of the Finance Ministry and Printing Information Bureau.
Overall, this time the focus is not just on 'will it be cut or not?' The real thing is what the future strategy is, as told by RBI. Market people and worldwide people are waiting for this signal. Let's see what happens today!
