The Reserve Bank of India’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, wrapped up its February 2026 policy meeting with a decision to hold benchmark interest rates steady. 

The outcome had largely been priced in by markets, particularly after the central bank delivered cumulative rate reductions of 125 basis points during the current financial year 2025-26 (FY26).

The central bank, however, upgraded its growth forecast from the earlier December meeting. The GDP estimate for the 2025-26 fiscal year was upgraded to 7.4 per cent, from the earlier forecast of 7.3 per cent shared in the December MPC.

The growth projection for the first quarter of the upcoming 2026-27 fiscal year (FY27) was also revised from 6.7 per cent to 6.9 per cent in today's MPC. The governor further said that GDP estimate for the second quarter of FY27 is being increased to 7 per cent, from the earlier forecast of 6.8 per cent.

"Risks are evenly balanced", the governor revealed. He added, "Recently concluded India-EU FTA, prospective India-US trade deal will support export momentum."

VIDEO | RBI Governor Sanjay Malhotra says, "With signing of India-EU trade deal and the US trade agreement in sight, growth momentum will likely to be sustained for a longer period."#MPC #MonetaryPolicy #RBI

(Source: Third Party)

(Full video available on PTI Videos -… pic.twitter.com/AFvF5lgi3R

— Press Trust of India (@PTI_News) February 6, 2026

A new GDP series will be unveiled later in the month, based on which, growth estimates for the complete FY27 will be shared in the April meeting, he noted.