Interest rates to remain at low level for long period of time: RBI Governor Sanjay Malhotra

RBI Governor Sanjay Malhotra announces low interest rates to persist, with unchanged repo rate at 5.25% and potential further decreases.

Reserve Bank Governor Sanjay Malhotra on Friday (February 6, 2026) said the key policy rates will remain at low levels for a long period and may go down even further.

The statement comes soon after the central bank decided to keep the repo rate unchanged at 5.25% at its bi-monthly monetary policy, and kept the stance neutral.

"The policy rates will continue to be at low levels for a long period of time (and) they will go down even further," Mr. Malhotra said in a post-monetary press conference.

He, however, added that the decision on rates will be taken by the Monetary Policy Committee (MPC).

Since February last year, the RBI has reduced the repo rate by 125 basis points. The governor said policy transmission on the deposit side has been slower and interest rate on fixed deposits will be going down.

Replying to a question on the impact of recent trade deals signed by India, the governor said this, along with other factors, could add up to 20 basis points to the country's GDP growth.