RBI Keeps Policy Rate Unchanged Amid Inflation Watch

 

January 10, 2026

The Reserve Bank of India decided to keep the benchmark repo rate unchanged, maintaining a cautious stance as inflation remains within the tolerance band but global uncertainties persist. The Monetary Policy Committee noted that while headline inflation has eased compared to earlier months, food price volatility and global commodity trends continue to pose risks. The central bank emphasized its commitment to balancing growth with price stability, stating that premature rate cuts could undermine inflation control efforts. RBI also highlighted steady domestic demand, improved credit growth, and resilient banking sector health. However, it flagged risks from geopolitical tensions and fluctuating crude oil prices. Market participants largely expected the decision, with bond yields and equity markets reacting mildly. The central bank reiterated that future actions would remain data-dependent, closely tracking inflation trends, monsoon outcomes, and global financial conditions.