RBI MPC, Feb. 5 -- The Reserve Bank of India's Monetary Policy Committee (MPC) begins its final meeting of FY26 on December 4and will come out with its policy announcement on February 6. After an extended rate-cut cycle over the past year, markets are now debating whether the RBI will opt for another reduction in the repo rate or choose to pause and reassess evolving macro conditions.

This policy review comes at a crucial juncture. Just days ago, the Union Budget 2026 outlined a 12% rise in capital expenditure and set a fiscal deficit target of 4.3%. At the same time, the external environment appears to be improving, with the US lowering tariffs on India to 18% and the recently signed India-EU FTA expected to support trade flows and capi...