Stock Market Live Update: RBI will keep the interest rate stable at 5.25% till 2026: Reuters Poll
The Reserve Bank of India will keep its key interest rate steady at 5.25% until 2026, according to a majority of economists polled by Reuters, as the central bank assesses the impact of its previous rate cut on the economy.
The central bank has reduced the benchmark borrowing costs by a total of 125 basis points from February 2025. But with inflation well below its target range and strong economic growth, there is no real reason for it to cut rates further.
However, growth is mainly being driven by government spending and not private investment, which is still lagging despite a short series of rate cuts by the RBI.
More than 80% of economists, or 59 out of 70, in a January 19-28 Reuters poll expected the Monetary Policy Committee to keep the repo rate at 5.25% at the end of its February 4-6 meeting.
Of the remaining respondents, 10 anticipated a 25-basis-point cut, while one expected a larger 50-basis-point reduction.
Most economists expect rates to remain at at least 5.25% through the end of this year.