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RBI holds repo rate steady at 5.25% in February 2026 MPC meeting

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RBI holds repo rate steady at 5.25% in February 2026 MPC meeting


New Delhi: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 PERCENT in its February 2026 monetary policy review, maintaining a neutral policy stance as inflation pressures remain under control and economic growth stays stable.

The decision was announced by RBI Governor Sanjay Malhotra after the three-day meeting of the Monetary Policy Committee (MPC), which began on February 4 and concluded on February 6.

Focus on Inflation and Growth

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The MPC chose to pause after a series of rate cuts over the past year, preferring to evaluate how earlier policy changes are affecting borrowing costs, liquidity, and overall economic activity.

Inflation has remained within the RBI’s comfort range, giving policymakers room to maintain the current rate while monitoring global economic conditions and domestic demand.

The RBI’s monetary policy framework aims to keep inflation close to 4 PERCENT with a tolerance band of 2–6 PERCENT, which continues to guide interest-rate decisions.

Impact on Loans, EMIs, and Markets

Since the repo rate directly influences borrowing costs for banks, the decision to keep rates unchanged means loan EMIs are unlikely to change immediately. However, banks and financial markets will continue to watch RBI signals on liquidity and future rate moves.

The central bank has already reduced rates by about 125 basis points since early 2025, which helped support economic growth while inflation eased.

What Happens Next

Economists believe the RBI may now focus more on policy transmission and liquidity management rather than further rate cuts in the near term.

Governor Malhotra is expected to outline the RBI’s outlook on inflation, growth, and financial stability in the coming quarters during the post-policy press conference.



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Government grant to reopen CO2 plant amid fears of Iran-linked shortages

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Government grant to reopen CO2 plant amid fears of Iran-linked shortages



A mothballed carbon dioxide plant is to be reopened with a Government grant of up to £100 million amid fears of shortages caused by the Iran war.

Business Secretary Peter Kyle signed off the grant to reopen the Ensus plant on Teesside, according to the Financial Times.

It is understood the grant will pay to get the plant up and running again for an initial three-month period.

The plant was mothballed last year after a trade deal with the US cut tariffs on bioethanol, its main product.

It will be reopened due to its ability to produce CO2 as a by-product. The gas is vital for several sectors, including drinks and the nuclear industry, but supply has been disrupted thanks to soaring energy costs on other sources such as fertiliser factories.

The grant for the Ensus plant is the first major intervention by the UK Government aimed at tackling possible shortages caused by the Iran conflict.

But fears range much wider than CO2, with former BP executive Nick Butler telling Times Radio the UK could face oil and gas shortages in two to three weeks.

He said: “There will be shortages and I think the Government now should be seriously planning how they’re going to handle that and part of that is maximising supply.”

On Tuesday, Shell chief executive Wael Sawan issued a similar warning at an industry conference.

Ministers continue to insist the supply of petrol remains reliable.

Energy minister Michael Shanks told MPs on Wednesday the Government was “absolutely not” planning for blackouts or petrol rationing, insisting the UK had a “strong and diverse range of supplies”.

The key question remains how long Iran’s effective blockade of the vital Strait of Hormuz will last.

On Thursday, Foreign Secretary Yvette Cooper will urge Iran to reopen the Strait of Hormuz as she travels to the G7 Foreign Ministers’ meeting in France.

She will make clear that the UK will help ensure safe passage for ships through the strait and provide an additional £2m in humanitarian aid to Lebanon.

Ms Cooper is expected to hold talks with counterparts, including US secretary of state Marco Rubio, France’s Jean-Noel Barrot, and Germany’s Johann Wadephul.

The strait remained closed on Wednesday evening, despite Iran’s foreign minister Abbas Araghchi claiming it was open to “non-hostile” shipping.

The conflict continued with Washington saying it would hit Iran “harder” if Tehran refused to accept it had been “defeated militarily”.

White House spokeswoman Karoline Leavitt insisted “productive” talks were continuing between Washington and Tehran.

But Mr Araghchi said in a message on his Telegram channel, translated from Farsi, that there had been “no negotiations or discussions with the American side” and suggested the US had effectively admitted defeat.

He said: “Didn’t they talk about ‘unconditional surrender’ before? What happened now that they are talking about negotiations and calling for them?

“I will explain that there are no negotiations, but the fact that they are mobilising their highest officials to negotiate with the Islamic Republic indicates their acceptance of defeat.”



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Video: How Kharg Island May Change the Trajectory of the Iran War

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Video: How Kharg Island May Change the Trajectory of the Iran War


new video loaded: How Kharg Island May Change the Trajectory of the Iran War

Kharg Island exports 90 percent of Iran’s crude oil. It has also become a potential U.S. target. Peter Eavis, our Business reporter, examines how the small island in the Persian Gulf has become a strategic target with significant risks.

By Peter Eavis, Gilad Thaler, Edward Vega, Lauren Pruitt and Joey Sendaydiego

March 25, 2026



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Oil prices volatile as Trump talks up Iran negotiations

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Oil prices volatile as Trump talks up Iran negotiations



Crude rose back above $100 a barrel as the US and Iran clashed over bringing the conflict to an end.



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