RBI may cut repo rate to 5 % in next MPC meet: Report

New Delhi: The Reserve Bank of India (RBI) may cut the policy repo rate by 25 basis points to 5 per cent in its February monetary policy meeting given the RBI’s dovish guidance, a new report has said. The Union Bank of India (UBI) said in the report that there is scope for a final 25 bps cut either in February or April 2026, also due to central bank's repeated references to benign inflation and subdued underlying price pressures. If adjusted for around 50 bps inflation contribution from gold, underlying price pressures appear even more moderate, the report added. "We see scope for a final 25bps rate cut in February or April 2026. Given the dovish policy guidance, we cannot rule out the possibility of a final 25bps rate cut in Feb'26 meeting to 5 per cent repo rate, even as the timing of final rate cut is usually difficult to call," the report said. The bank noted that timing remains uncertain also due to the Consumer Price Index (CPI) and Gross Domestic Product (GDP) base year revisions, due in February 2026.