Key Highlights from the RBI Monetary Policy Review - February 2026, by Bajaj Broking Research

The Monetary Policy Committee (MPC) unanimously decided to maintain the repo rate at 5.25%, while continuing with a neutral stance, supported by an improving growth outlook and manageable inflation dynamics.

Key Highlights:

Policy Rates Maintained:

- Repo Rate at 5.25%
- Standing Deposit Facility (SDF) at 5.00%
- Marginal Standing Facility (MSF) and Bank Rate at 5.50%

Growth Outlook Strengthens:

- FY26 GDP growth revised upward to 7.4% (earlier 7.3%)
- Q1 FY27 growth projected at 6.9%, Q2 FY27 at 7.0%, with risks evenly balanced

Inflation Outlook Comfortable:

- CPI inflation remained below the tolerance band in Nov-Dec
- FY27 inflation projected at 4.0% (Q1) and 4.2% (Q2), close to the RBI's target
- Minor upward pressure driven by higher precious metal prices

Market & Liquidity Measures:

- RBI to introduce a regulatory framework for corporate bond index derivatives and total return swaps

- ₹2.5 lakh crore cap removed under the Voluntary Retention Route (VRR)

Support for Real Estate & Financial Sector:

- Banks permitted to lend to REITs with safeguards
- Proposal to ease NBFC branch expansion norms

Banking Sector Initiative:

- Launch of Mission SAKSHAM to strengthen Urban Cooperative Banks (UCBs)

Bajaj Broking View:

The RBI's policy underscores confidence in India's domestic growth momentum while maintaining vigilance on inflation and global uncertainties. The continued focus on market deepening and credit availability is structurally positive for financial markets.

Source : Equity Bulls

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RBI MonetaryPolicyReview February2026 BajajBrokingResearch