Good News for Borrowers or Status Quo? Repo Rate Verdict Today (Image Courtesy: Facebook)
New Delhi: The Monetary Policy Committee (MPC) meeting of RBI is in its final stages today. On February 6, RBI will announce 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?
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 scope for further cuts right now.
In the recently presented budget, the government has decided to increase the capital expenditure (capex) by about 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.
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 capital to come in, which will strengthen the economy.
In the December meeting, the committee had reduced the repo rate by 0.25%. Since then, economists believe that the RBI will now adopt a 'wait and see' strategy – that is, it will wait and see the data.
RBI Governor Sanjay Malhotra will announce the decisions in a press conference at 10 am. Updates will be available not only on repo rate, but also on inflation, GDP growth and future policy direction.
There will be live stream on RBI's official website, YouTube channel and X (Twitter) handle. Real-time updates will also be available on the websites of the Finance Ministry and Press 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 common people are waiting for this signal. Let's see what happens today!
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