DBS Bank’s research team discusses the upcoming monetary policy committee meeting of the Reserve Bank of India (RBI), scheduled for February 6, 2026. The report predicts that the RBI will maintain current interest rates, citing robust growth momentum despite trade tensions and lowest inflation. The Indian rupee has come under depreciation pressure and the RBI is expected to focus on liquidity and currency risks.
RBI’s monetary policy outlook
“The RBI’s monetary policy committee will decide on interest rates on February 6. The MPC cut rates in December 2025, in line with our expectations, but is expected to refrain from further rate cuts in February.”
“Growth momentum remains strong despite trade tensions while inflation remains low. The rupee remains under pressure, depreciating to fresh lows.”
“A further reduction in interest rates could spur further repatriation of interest rate-sensitive portfolio flows.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
