INR: RBI expected to pause rate cuts – DBS Bank
DBS Bank's Group Research discusses the upcoming Reserve Bank of India (RBI) monetary policy committee meeting scheduled for February 6, 2026. The report anticipates that the RBI will maintain its current interest rates, citing a firm growth impulse despite trade tensions and inflation that is off its lows. The Indian Rupee has faced depreciation pressures, and the RBI is expected to focus on liquidity and currency risks.
RBI monetary policy outlook
"The RBI monetary policy committee will decide on rates on 6-February. The MPC lowered rates in December 2025, along our expectations, but is expected to refrain from cutting rates further in February."
"Growth impulse has been firm despite trade tensions, while inflation is off lows. The rupee has continued to be under pressure, depreciating to successive fresh lows."
"Lowering rates further could spur further repatriation of rate-sensitive portfolio flows."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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