India Holds Rates as Expected

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The Reserve Bank of India (RBI) maintained its key repo rate at 5.25% during its February 2026 meeting, the first monetary policy decision of the year, after cutting it by 25 bps at the December meeting, in line with forecasts, amid confidence in a softer inflation outlook. India’s annual inflation accelerated to 1.33% in December 2025 but remained below the Reserve Bank of India’s tolerance band of 2%–6%

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