RBI holds rates steady in February, opts for liquidity injection over hikes

The RBI is holding its policy rate unchanged in February, rejecting any move to tighten monetary policy even as inflation remains elevated. Economists surveyed expect no changes to the repo rate at the upcoming monetary policy decision.

Rather than raising rates, the central bank plans to pump additional liquidity into banks—a signal that it is not moving toward tightening in the near term. This approach buys time for inflation trends to become clearer before the RBI commits to future rate direction.