India’s central bank has signalled continuity in its monetary settings as supportive growth and easing price pressures shaped its first policy review meeting of 2026, Times of India reported.

India’s central bank, the Reserve Bank of India (RBI), in New Delhi today kept the benchmark repo rate unchanged at 5.25% following the conclusion of its first meeting of the yeaar - the January review. In doing so it extends a pause in movements after a series of aggressive easing over the past year.

The decision also serves to reflect resilient domestic demand and current inflation trends that have given policymakers scope to stay patient.

The RBI Governor Sanjay Malhotra said in his speech after the monetary policy meeting that inflation is projected to be 2.1% for FY2025-2026.

India has already delivered a series of cumulative rate cuts of 125 basis points during the easing cycle, reducing borrowing costs across the housing, auto and corporate loan sectors and easing repayment burdens for households.

As a result, consumer price inflation has cooled steadily, reaching its lowest point in the current data series in October 2025, helped by softer food prices and easing supply constraints.

Economic momentum has also exceeded expectations this fiscal year, reinforcing India’s position as the fastest growing major economy. Official data shows output expanding above 7%, supported by public investment, improving private consumption and steady services exports, even as global conditions remain uneven amid a range of geopolitical issues.

Investors are now focused on the tone and projections embedded in India’s central bank policy statement. Updated forecasts for inflation and gross domestic product will be scrutinised for signals on the timing and scale of future policy moves, as global central banks around the world reassess easing paths.

Looking ahead, sustained disinflation alongside durable growth could now allow India’s central bank to maintain an accommodative bias while preserving financial stability. That balance remains central to investor confidence and rupee stability.