The Reserve Bank of India’s Monetary Policy Committee has cut repo rate by 25 bps with immediate effect and continues with the Neutral stance. The Government has decided to undertake OMO purchases worth Rs 1 lakh crore and 3-year Dollar-rupee Buy-Sell swap of$5 billion US dollars
The RBI Governor said, “Indian economy seen significant inflation deflation since October Policy. In a rare Goldilocks situation, Q2 GDP at 8.2% and inflation is at significant lows.”
RBI MPC December 2025 Meeting Live: Governor Sanjay Malhotra to announce Repo Rate decision; GDP & Inflation forecast
RBI MPC Meeting 2025 LIVE Updates:GDP growth outlook
FY26 GDP growth: 7.3%
Q3: 7%
Q4: 6.5 %
Q1 FY27 projection: 6.4%
The Reserve Bank of India announced repo rate by 25 basis points bps to 5.25%. Maintains neutral stance
RBI Governor Shaktikanta Das begins Monetary policy speech. Policy decisions to be announced soon.
“We anticipate a 25-basis-point cut in the repo rate in December. While growth remains robust, a significant decline in retail inflation in October has created additional room for this adjustment,” said Crisil Chief Economist Dharmakirti Joshi.
RBI MPC Meeting 2025 LIVE Updates: BNP Paribas says RBI likely to hold rates
BNP Paribas expects the RBI to stay cautious and says the central bank will not cut rates this time.
“Given external account uncertainties (in both current and capital accounts), sensitivity to INR depreciation might become the decisive policy motivator. A stable GDP growth print and outlook further add to our view that the recent fiscal incentives, liquidity support and credit policy will remain the favoured tools of economic accommodation,” BNP Paribas said.
“The sharp drop in the INR vs the USD in the last few days perhaps only persuades further in favour of policy caution,” it noted.
RBI MPC Meeting 2025 LIVE Updates: Economists split on MPC move
According to a poll conducted by The Financial Express on November 30, economists are divided: 8 out of the 15 economists surveyed expect no rate cut, while the remaining 7 anticipate a 25-basis-point (bps) reduction. Interestingly, two economists shifted their stance from a cut to a pause after the stronger-than-expected Q2 GDP numbers.
It is important to note that this poll was conducted before the rupee fell to a lifetime low earlier this week, crossing the 90 mark.
Read more: MPC Poll: Economists split on December policy between pause and 25 bps cut
Rupee rises 9 paise to 89.80 against US dollar in early trade on Friday, ahead of RBI’s monetary policy decision. The rupee fell to a lifetime low earlier this week, crossing the 90 mark. Analysts say one of the reasons for the decline is reduced intervention by the RBI.
“Markets expect clarity on whether the central bank will step in to stabilize the currency,” said Jateen Trivedi of LKP Securities.
Read more: 4 reasons why the Rupee is falling: Plunges to historic lows, breaches 90 against dollar
Repo rate: Unchanged at 5.50%
Policy stance: Neutral
Headline inflation: Revised downward to 2.6% from earlier estimate of 3.1%
GDP forecast for FY26: Revised upward to 6.8% from the earlier estimate of 6.5%
RBI MPC Meeting 2025 LIVE Updates: Markets await policy decision amid weak Rupee, strong growth
Analysts, investors and markets are closely awaiting the announcement, as the meeting comes at a time when the Indian rupee touched a lifetime low this week, crossing the 90 mark. GDP, however, rose by 8.2%, the fastest pace in six quarters. Inflation, on the other hand, slowed to a record low of 0.25% in October.
RBI MPC Meeting 2025 LIVE Updates: Decision on key interest rate
This is the Reserve Bank of India’s fifth Monetary Policy Committee (MPC) meeting of the fiscal year. The meeting began on December 3 and will conclude today, December 5, with the policy decision scheduled to be announced at 10:00 AM by RBI Governor Sanjay Malhotra. The announcement will cover the repo rate, GDP growth forecast, and inflation outlook.
Greetings! Reserve Bank of India (RBI) is set to announce the Monetary Policy Committee (MPC) decision on policy rates at 10:00 am today. Stay tuned to this space at financialexpress.com for detailed coverage, key expectations, and market reactions to the RBI’s decision.