The Reserve Bank of India’s Monetary Policy Committee (MPC) delivered a surprise 25 basis points repo-rate cut on 6 February 2026, bringing the policy rate down from 6.50 % to 6.25 %. The decision, taken in the second bi-monthly review of the calendar year, was accompanied by a shift in stance from “withdrawal of accommodation” to “neutral”. The move caught bond and equity markets off-guard, triggering an immediate rally in government securities and a sharp upward move in benchmark indices.