RBI Repo Rate 2026: RBI to take repo rate cut decision in February? Indications in the UBI report

• Good news from RBI in February 2026
• Repo rate likely to be reduced by 25 basis points to 5 percent
• Disclosure in Union Bank of India report

RBI Repo Rate 2026: Reserve Bank of India (RBI) may cut the repo rate by 25 basis points to 5 percent at its next monetary policy meeting (MPC) in February. Union Bank of India (UBI) says a new report. UBI said in the report that the RBI has repeatedly said that inflation and price pressures will remain low, so the final rate cut is likely in February or April 2026.

According to the report, if gold’s impact on inflation is reduced by 50 basis points, price pressures are seen to be even lower. A report issued by the bank said that we believe the final rate cut of 25 basis points is likely in February or April 2026. A big announcement is likely to be made in the next meeting.

Also read: Stock Market Today: Volatility in stock market today, increasing pressure on IT shares?

At the February 2026 meeting Repo rate A cut to 5% cannot be ruled out, although the timing of the final interest rate cut is generally tough. The timing is uncertain as the Consumer Price Index (CPI) and GDP base year will change to February 2026, the bank said. For these reasons, the Monetary Policy Committee may adopt a wait-and-see approach and reassess inflation and growth trends after revised data is released. The RBI MPC cut the repo rate by 25 basis points to 5.25% in December and will next meet on February 4-6, 2026.

Also read: PowerUp Money Mutual Fund: Mutual Fund Adviser PowerUp Money Takes Big Leap, Raises ‘So Much’ Million Dollars

The RBI has revised its economic growth forecast for fiscal 2026 to 7.3 percent, as the economy is expected to pick up in the second half of the fiscal, including domestic reforms such as income tax changes, easier monetary policy and GST reforms. According to a recent Yes Bank report, if foodgrain prices continue to fall, the chances of further rate cuts may be slim unless there is significant weakness in the economy. RBI strives to maintain adequate liquidity in the market and implement a monetary policy based on the repo rate.