Economy

RBI Monetary Policy Committee: Key Highlights (February 2026)

Repo rate decision, inflation projections, and GDP growth outlook from the RBI's February 2026 Monetary Policy Committee meeting.

Key Decisions

The Monetary Policy Committee (MPC) reviewed the repo rate in its bi-monthly meeting, weighing retail inflation trends against the need to support growth.

Why It Matters for Exams

  • Banking exam aspirants should track the current repo rate, reverse repo rate, and CRR/SLR figures.
  • UPSC Mains GS-III candidates should be able to connect monetary policy stance (accommodative / neutral / withdrawal of accommodation) to inflation targeting under the flexible inflation targeting framework.
  • The MPC operates under a mandate to keep CPI inflation at 4%, with a tolerance band of +/- 2%.

Static GK Points

  • The RBI’s MPC has six members: three from the RBI and three external members appointed by the Government.
  • The current inflation-targeting framework was adopted in 2016 and is reviewed periodically.

Practice Angle

Expect prelims-style questions on the composition of the MPC and matching-type questions linking policy tools (repo, reverse repo, CRR, SLR, OMO) to their function.