RBI cuts repo rate by 25 bps

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, has announced its decision to reduce the policy repo rate by 25 basis points (bps) to 5.25% on December 5, 2025.

The vote for the rate cut was indeed unanimous among the six MPC members, indicating a strong consensus on the current economic outlook.

The MPC maintained its 'Neutral' policy stance.

MSF & SDF Rates Adjusts To 5.50% & 5% Respectively.

RBI increased FY26 GDP forecast by 50 bps to 7.3%.

RBI cuts inflation forecast for FY26 from 2.6% to 2%.

RBI revised FY26 GDP growth forecast to 7.3% from 6.8%.

RBI revised FY26 CPI inflation forecast to 2.0% from 2.6% earlier.